Small business managers are putting their foot down when it comes to increasing their healthcare costs.

In its latest survey completed in fall, 2005 of 2,100 small business senior managers, ISI for the first time in three years saw a marked change in their healthcare planning. Less than one in five (19%) said they were increasing their healthcare costs versus a year-ago total of one in three (33%).  Most managers (71%) said they were maintaining current costs while 10% said they would reduce costs, down from 15% in 2004.

The survey results confirm a long-term trend by business managers to shift the cost of healthcare to employees.
More than half of all respondents (54%) said they were requiring employees to shoulder more of the healthcare burden, roughly the same as last year (53%).

With 11% indicating they are offering HSAs in 2005 and another 12% indicating they will offer HSAs in 2006, it would appear that the new form of HDHP is taking root within small and medium-size firms.

A majority of respondents to the survey are from firms with less than 100 employees but the percentages saying they would hold healthcare costs to current levels in 2006 were almost equal for companies with more than 500 employees polled.

There were more than 2,900 respondents to the Fortune/HSAFinder.com survey conducted in late September.

Planned Healthcare Expenditures