Reasons and Recommendations for Small Businesses to Offer Insurance

Given the many hurdles small businesses must overcome to offer health coverage, what kinds of businesses still offer insurance and why?
Not all small employers are equally likely—or unlikely—to offer health benefits. Small firms that must compete heavily with large employers for workers are far more likely to offer insurance. These are ones that also tend to pay higher wages, have lower turnover rates, and have been in business longer. Businesses in sectors that are highly unionized also are far more likely to offer insurance. According to research from the Association for Healthcare Research and Quality, small firms in the mining and manufacturing, wholesale trade, and professional services are the most likely to offer health insurance, while those in agriculture and retail are the least likely.Given the many hurdles small businesses must overcome to offer health coverage, what kinds of businesses still offer insurance and why?
Not all small employers are equally likely—or unlikely—to offer health benefits. Small firms that must compete heavily with large employers for workers are far more likely to offer insurance. These are ones that also tend to pay higher wages, have lower turnover rates, and have been in business longer. Businesses in sectors that are highly unionized also are far more likely to offer insurance. According to research from the Association for Healthcare Research and Quality, small firms in the mining and manufacturing, wholesale trade, and professional services are the most likely to offer health insurance, while those in agriculture and retail are the least likely.