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Small business owners say cost of providing health insurance is biggest challenge

Small Business Struggles Winchester
Posted at 6:49 AM, Mar 10, 2021
and last updated 2021-03-10 10:10:24-05

It's been 12 months now that we've been dealing with this pandemic and small businesses have been struggling to survive.

Those businesses that have been able to keep their doors open have had to take other cost-cutting measures.

“What we actually saw in the survey is that the rising cost of health care is just as much a problem, if not more problematic, for small business owners who are trying to figure out how to keep their doors open,” said Rhett Buttle, Senior Advisor at Small Business for America's Future.

Small Business for America’s Future is a coalition of small businesses across the country. It surveyed owners about their support for the American Rescue Plan, which will provide grants and funding for small businesses.

Many were already struggling to provide health insurance to their employees before the pandemic, due to high costs. But the economic crisis made it less affordable.

While nearly 70% of small business owners support the American Rescue Plan, experts say more needs to be done.

“We really need additional actions from the Biden administration, focused on curbing costs, curbing on really bringing manufacturers to the table, and really focus on policy options to reduce the cost of health care for small businesses,” said Buttle.

In the survey, 92% of small business owners said the Biden administration needs to prioritize reducing health care costs.