California Small Business Owners Eager for Healthcare Reform

Sausalito, CA, Sept. 1, 2009: Recent research shows the majority of California small businesses are struggling due to the high costs of healthcare, and believe healthcare reform is necessary and important in getting the economy back on track.

A statewide survey found that California small businesses believe affordability is the primary obstacle in obtaining health insurance. California was one of 15 states polled over the past six months by Small Business Majority, a leading national small business advocacy organization focused on healthcare reform. Seven hundred randomly selected small business owners were polled. Of the total, 100 were Latino small business owners and 100 were rural small business people.

Eighty-six percent of California small business owners overall and an overwhelming 97 percent of rural small businesses not offering health insurance say they can't afford to. Of those who do provide insurance, 70 percent of small businesses overall, and 83 percent of rural small businesses, are struggling to provide it. Small business owners also see the cost of health insurance as a significant barrier to entrepreneurship.

Small business people are in an untenable position when it comes to healthcare. Costs are astronomical and rising every year, yet being uninsured can be just as burdensome financially if illness strikes, said John Arensmeyer, founder and chief executive officer of Small Business Majority. Small businesses are desperate for reform. The cost of doing nothing is just too high.

The survey found that 86 percent of the state's small business owners believe that people should be able to buy health insurance without regard to any past health problems. In addition, 81 percent support the creation of a health insurance exchange from which small businesses could choose coverage from competing health plans.

Over the past decade we've seen our insurance costs increase 15 to 25 percent each year, and instead of the quality of our benefits getting better, it's gotten worse, said Liz Parker, owner of Tulsa Rib Company in Orange, Calif. We need some type of reform that contains costs and offers small businesses some choice. Without it, very soon the only choice we'll have is to forego health insurance entirely.

Additional findings in the report include:

• 76% of Latino small business owners, and 67% of California's small business owners overall, say more people would become entrepreneurs if they knew they could get health insurance despite pre-existing conditions.
• 62% of small businesses, 66% of Latino businesses and 60% of rural small businesses believe their company has a responsibility to provide health coverage for its employees.
• 68% of the state's small business owners believe that to make healthcare more affordable, it's important to share the responsibility among individuals, employers, insurance companies, providers, and government.