SMC Business Councils

Risk & Insurance, May, 2003

One out of every two employers said the cost of health insurance caused them to lay off staff or postpone hiring, according to an e-mail survey conducted by SMC Business Councils. Nearly 60 percent of respondents rated escalating health insurance costs as a serious problem. The same percentage indicated that they trimmed employee health benefits or changed health plans in the past three years to slow the rate of cost increases.

One-third also said they would consider dropping health benefits if costs continued to increase. Only one employer in three considered health insurance to be a responsibility.