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Todd Stottlemyer, president and CEO of the National Federation of Independent Business, issued the following statement on rising small business healthcare costs after the Kauffman-RAND Institute for Entrepreneurship Public Policy announced results from a study that examined the impact of rising healthcare costs on small business.

 “Healthcare costs must be contained to safeguard the viability of small business. Annual increases in healthcare premiums consume a higher percentage of a business’s payroll now more than ever, far outpacing wage increases. The RAND study found half of all small businesses that offer health insurance spent more than 10 percent of their payroll on this benefit, further illustrating why healthcare costs have been the number one concern for small business owners and their employees for the past twenty years.

The Kauffman-RAND Institute report, authored by Drs. Susan M. Gates and Christine Eibner, found that small firms with fewer than 25 employees have been significantly impacted by increases in healthcare costs, with a 43.5 percent increase in the median cost of coverage between 2000 and 2005. This impact is even greater on firms with fewer than 11 employees, experiencing a 53 percent increase over the same time period. Not only are healthcare costs steadily rising for small businesses, the quality of coverage is also not consistent with that of larger firms.

For more information about Solutions Start Here or NFIB visit www.nfib.org