How small businesses, employees can survive health insurance cuts

Damanick Dantes
Updated

Faced with decreasing revenues from the global recession and higher health care premiums, many small businesses are opting to completely drop health coverage for their employees.

From 1993, the number of small businesses offering health insurance has dropped more than 20% to the current level of 38%.

With health coverage currently at the top of the political agenda, many Americans are faced with a rude awakening. Many people simply cannot afford family private plans that can exceed $20,000 per year.

But don't despair: Here are some useful tips for small businesses and employees when faced with this situation:

Small Businesses

• Offer some type of credit or bonus if you decide to drop health coverage. This extra cash can help your employee transition to a new health plan.

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