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Advice for Small Businesses Considering Dropping Health Coverage

Advice for Small Businesses Considering Dropping Health Coverage
Photograph by Tetra Images/Corbis

Question: Our business has 30 employees. Our current group health insurance premium was increased so much this year that we cannot continue to offer coverage. If we were to drop our insurance and agree to pay workers an amount equal to what we pay for the insurance, would it be cost-effective? What are the implications of such a move?

Answer: This is a question that a lot of small business owners are asking these days, according to insurance and tax professionals around the country. That’s probably because providing health insurance is so costly—and the Affordable Care Act may give your employees better options.