Study Finds Small Business Workers Losing Coverage

The Commonwealth Fund issued a report on November 1, 2012 that shows the share of U.S. workers in small businesses (those with fewer than 50 employees) who were offered, eligible for, and covered by employer-sponsored health insurance has declined over the past decade.  From 2001 to 2011, the share of people under age 65 covered by employer plans fell from 68 to 57%.  Most of the erosion occurred among small firms.  One in three (33%) of workers in small firms had health insurance through their employer in 2010, compared to more than half (55%) of workers in midsize firms (50 to 99 employees) and more than one in seven (71%) workers in large firms (100 or more employees).  The report also points out that small businesses pay more--nearly 18% more--for the same benefits than do large firms.