Survey: Wisconsin Small Businesses Crushed by Rising Health Costs

Media Contacts

WISPIRG

Madison, WI, July 21, 2009 — Wisconsin small business owners are being crushed by rising health care costs, and feel left out of the current health care debate in Washington, according to a new report released by Wisconsin Public Interest Research Group on Main Street, Madison today.
 
“In this economy,” said WISPIRG’s Bruce Speight, “health care costs are killing small business owners like Sam Chehade, owner of Michelangelo’s Coffeehouse, and Ron Czerwien, owner of Avol’s Bookstore. But instead of leading on this important issue, the national Chamber of Commerce and other inside-the-beltway groups are playing politics with a crucial issue and actively impeding reform efforts.”
 
The new report, The Small Business Dilemma, makes clear that small business owners, like Chehade and Czerwien need health care reform.
 
“Year to year, we don’t know what our health insurance will cost, and if our business can afford it.  But we do know it keeps going up and the insurance companies are saving the lower prices and decent coverage for our bigger competitors,” Chehade, a participant in the survey, said.  “Ideally, every person would be covered.  As an industrialized country, it is an insult not to have health care for all.  The status quo is not acceptable.”
 
Chehade and Czerwien were two of 343 small business owners and managers around the country who took part in a snapshot survey of small businesses by U.S. PIRG, the federation of state Public Interest Research Groups. The result, The Small Business Dilemma, finds that the costs and administrative hassles associated with offering insurance weigh particularly heavily on small businesses.
 
According to the 14-page report:

• Small businesses value health insurance as a key to business success because it allows them to attract better employees.

• 78% of small business owners surveyed who do not offer coverage would like to do so but face high affordability barriers.
 
“Americans are needlessly suffering, and in some cases dying, simply because they can’t get affordable health care,” said Czerwien, another participant in the survey.  “The politicians and the health & business organizations which oppose a national health care plan are completely out of touch with reality. It’s a national embarrassment, and something has got to be done about it.”
 
“The health care reforms that we propose will allow small business owners to cut costs, share risk, and save jobs.  Most important, our proposal will give small business owners and their employees peace of mind knowing that health care costs will no longer drive people into bankruptcy and that no one will be denied coverage because of pre-existing conditions,” said Congresswoman Tammy Baldwin (D-WI).  “A public health plan option will help keep costs down and private insurers honest so that people may choose the plan best suited for their needs.  This is the robust reform we need.  The status quo is no longer sustainable,” said Baldwin who serves on one of the three House committees charged with drafting the reform proposal.