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Small Business less likely to to provide health insurance

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A contributing factor to the increasing number of uninsured Americans, is the fact that more of them are working for small ccomapnies than in years past.

Only 60% of businesses with less than 200 employees provided health benefits in 2006, compared with 98% of those with 200 or more employees. Small businesses have been gaining the U.S. employment base for three consecutive years. Large firms are more likely to reduce staff during recessions and slow-growth economies. In addition, large companies are more likely to be manufacturers, which can replace workers with automation through technology, and to outsource work, which also results in downsizing. Meanwhile, smaller businesses are often in service industries such as consulting and health care fields that require workers rather than machinery.

See USA Today story, Small businesses again gain ground in overall U.S. employment

About this Entry

This page contains a single entry by Phil Daigle published on October 13, 2006 12:30 PM.

Washington state tackles health insurance for the working poor was the previous entry in this blog.

Hospitals Sue Blue Cross of California is the next entry in this blog.

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