Confirming studies conducted by Information Strategies, Inc. (ISI), AFLAC insurance’s latest study highlights the concerns small firms have about their ability to provide affordable healthcare insurance to employees.

The latest study by the Georgia-based company mimics ISI’s own research, a landmark study of 3,500 employers who indicated that healthcare was their number-one concern for long-term company viability.

Seventy percent of small business decision-makers indicated to AFLAC that they are concerned about their company's ability to provide affordable health insurance coverage for employees, according to a recent survey commissioned by AFLAC.

Two primary concerns included:

• Attracting and retaining employees, with nearly two-thirds (63 percent)
  of respondents reporting that they are concerned about their company's
  ability to provide a benefits package that will attract and retain
  employees; and
  
  
• Nearly half (49 percent) agree that they cannot attract and retain top
  quality employees without offering competitive health benefits.

The AFLAC-commissioned survey of 501 small business decision-makers indicates that respondents see a direct correlation between profitability and current health benefit offerings, with more than a third (36 percent) reporting that their current health benefit offering has negatively affected business. The top three effects were cited as: decline in profitability (24 percent), inability to attract new employees (11 percent), and loss of good employees (seven percent).

"Quality health insurance benefits are often key to recruiting and retaining good employees," said Paul S. Amos, II, executive vice president and chief operating officer. "Because small businesses are more susceptible to premium increases, it is critical that small business owners and management are well-informed of the numerous health benefit options available."

Six in ten (58 percent) of survey respondents agree that "it is important to financially help employees with health challenges and medical emergencies." Among small businesses that offer some type of benefits to their employees (58 percent), an average of 52 percent of the employee base receives health care coverage, with these employees paying an average of 31 percent of health insurance premiums. While 21 percent of these employees pay zero percent of health insurance premiums, 63 percent pay half or more.

"AFLAC recognizes and respects the contribution small businesses make to the growth of our economy. We also understand that the rising costs of health benefits are having a significant impact on the bottom line of small businesses and on their employees' total compensation. That is why we offer employees benefits—it allows businesses of all sizes to make insurance policies available to their employees with no direct cost to the business," added Amos.

Additional key findings from the survey include:

• Nearly half (46 percent) of small business decision-makers report that
  increasing health care costs have negatively impacted their employees'
  wages.
  
  
• Approximately four in ten (38 percent) have taken some action around
  their benefits last year and one-third (34 percent) anticipate taking
  some action in the coming year.
  
  
• Four in ten (42 percent) of those surveyed agreed that annual increases
  in health benefits have made them decrease their offerings.
  
  
• Fewer than one in ten (seven percent) of small businesses currently
  offer Health Savings Accounts (HSAs) to their employees.
  
  
• Of those small business decision-makers considering implementing HSAs,
  73 percent indicated that giving their employees more options was the
  primary reason.

For more information about the survey or AFLAC policy offerings for small businesses, visit www.aflacsb.com.