Many Iowa small businesses struggling to pay health insurance costs, survey finds

DES MOINES - Advocates for small businesses and rural interests have released a survey they say shows the need for health care reforms that lower the cost of insurance.

The survey of 200 Iowa small business owners conducted by Small Business Majority, an advocacy group, found that just 37 percent of the businesses paid for some part of the health insurance bill for their employees.

Of Iowa small businesses offering health insurance, 52 percent say they are struggling to do so. Of those that don't offer health insurance, 85 percent say they can't afford it, the survey found.

John Arensmeyer, CEO of Small Business Majority, which completed the survey, cited overwhelming support for the establishment of a health insurance pool to create a marketplace where small businesses and individuals can choose coverage.

Arensmeyer said his group is focused almost exclusively on health care now because their surveys in a handful of states this spring have found it is the most important issue facing small businesses.

In Iowa, 70 percent of businesses polled say health care reform is needed to get the economy back on track.

Jon Bailey, a research director at the Center for Rural Affairs, said the results of the survey clearly demonstrate that the current health insurance system does not work for small businesses.

"They pay too much and receive too little in the way of quality and security," Bailey said.

The survey also sends a message to Congress that small businesses want a system that provides affordable, quality health coverage, including a public health insurance option, Bailey said.

Reforming the health insurance system has significant consequences for the rural economy and rural development, Bailey said.

The cost of health insurance prevents family farmers, ranchers and small businesses from expanding their business and creating jobs, he said.

"As the results of this survey demonstrate, the cost and inadequacy of health insurance is killing the entrepreneurial dreams and opportunities needed to reinvigorate much of rural America," Bailey said.