Report: small business owners not sure how to decide on best insurance plans for workers

Small business owners don't understand the financial ramifications of their insurance plans and are not confident enough to choose the appropriate plans for their employers, according to a new survey from the National Association of Insurance Commissioners NAIC).

Small business owners don't understand the financial ramifications of their insurance plans and are not confident enough to choose the appropriate plans for their employers, according to a new survey from the National Association of Insurance Commissioners NAIC).

The survey, which was conducted between July 22 and July 31 among 500 small business "decision makers," found that 64 percent of the respondents said they were unconfident in their ability to pick the right health insurance plan for their workers that will fit the budget they are allowed. Additionally, one-third of respondents said that their budget was not large enough to provide health insurance.

"In this economic environment, small business owners need to be especially mindful of any decision that will affect their financial future," said NAIC's president Roger Sevigny. "Now, more than ever, it is important they get smart about their choices and consider the implications that making a bad decision could have on their business and their employees' future."

Only 27 percent of those surveyed said they understood their insurance plan and the premiums associated with it.

In order to get more knowledgeable on health insurance for small businesses, the NAIC suggested that small business owners speak to insurance experts as well as friends and family to get an idea of what their workers will want with their insurance benefits.

Earlier in August the U.S. Small Business Administration administrator Karen Mills stated that they had become "the popular kid at the dance" as health insurance for small businesses had become a centerpiece of President Barack Obama's health care reform plans.

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Posted: August 25, 2009

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