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November 20, 2009

Small firms cutting back on health plans

  • Businesses already strapped by the economy are ending or scaling back health insurance plans to save money.
    • By DAVID A. LIEB
    Associated Press Writer

    JEFFERSON CITY, Mo. — Faced with high health insurance costs, a North Carolina brokerage passed the buck on to its employees, a Texas public relations firm switched from group insurance to stipends, and a Missouri travel agency let its workers walk away instead paying for insurance.

    Across the country, businesses already strapped by the economy to turn a profit are sacrificing or scaling back employee health insurance plans because of their escalating costs. The crunch has particularly socked smaller employers, who have become a centerpiece in the debate over how to overhaul the nation's health care system.


     
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