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For Immediate Release:
2009-07-22
For More Information:
Dave Rosenfeld
(503) 231-4181 (Ext. 311)

New Survey: Rising Health Costs Crush Small Businesses

Oregon small business owners are being crushed by rising health care costs, and feel left out of the current health care debate in Washington D.C., according to a new report released by Oregon State Public Interest Research Group.

"In this economy, health care costs are an unsustainable strain on Oregon's small businesses" said OSPIRG advocate Laura Etherton, "Businesses surveyed for this report, The Small Business Dilemma, made it clear that they need health reform."

“Small businesses wants to offer healthcare to its employees, it is important to the people I work with every day,” said Sean Moriarty, operations manager of CESSCO, a construction equipment sales and service company in Portland, “But just last year premiums went up by more than 40 percent.  This is clearly not sustainable and something has to be done now. We can’t wait even two years.”  

U.S. Senator Jeff Merkley is a key supporter of health care reform and recently included an amendment to give small businesses more options for affordable coverage as part of the Senate HELP Committee Bill.  “Small businesses are the lifeblood of Oregon’s economy,” Merkley said.  “As we are working to create jobs and grow our economy, it is vital that we lower health care costs and expand choices.”

The report summarizes surveys from 343 small business owners and managers across the nation, conducted by U.S. PIRG, the federation of state Public Interest Research Groups. The result, The Small Business Dilemma, finds that the costs and administrative hassles associated with offering insurance weigh particularly heavily on small businesses. According to the report:

• Small businesses value health insurance as a key to business success because it allows them to attract better employees.

• 78% of small business owners surveyed who do not offer coverage would like to do so.


• 80% of those who would like to offer coverage cite the expense of coverage as a reason why they don’t

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