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Most say they provide health benefits because it helps with employee recruitment, increases employee loyalty, and decreases turnover. They also note that these benefits positively affect employee attitude, performance, and health. The most important reason for offering health insurance coverage, small employers say, is that "it is the right thing to do...

The most important reason for offering health insurance coverage, small employers say, is that "it is the right thing to do." The most significant reason for a small business employer's decision not to offer health benefits however is the skyrocketing costs.

So what can a small business employer do to maintain its health care coverage for its employees? Possibilities are reducing benefits, shifting more of the cost of the premiums to its employees, requiring employees to pay high co-payments when they visit a doctor, switching from a PPO to a HMO, and covering only employees rather than including family members...

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