A new study suggests that less than half of small businesses offer employer-sponsored health insurance — with minority-owned businesses offering insurance less often than White-owned businesses.
Researchers at the University of Colorado Denver’s Department of Health and Behavioral Science used restricted data from the U.S. Census Bureau’s 2012 “Survey of Business Owners” and the bureau’s “Annual Survey of Entrepreneurs” from 2014 through 2016 to analyze trends during the rollout of the Affordable Care Act (ACA). Their study, published in the September issue of SSM-Population Health, revealed “substantial” disparities regarding the racial/ethnic composition of business owners and whether they offer health insurance.
“The majority of small businesses do not offer ESI [employer-sponsored health insurance],” researchers wrote. “Further, disparities are substantial. In 2012, just 41% of White-owned small businesses offer[ed] ESI, compared to 26% of Black-, 26% of Asian-, and 23% of Hispanic-owned small businesses. These disparities fail[ed] to improve across years when the ACA incentives were implemented. Policies that recognize and address differences in ESI among small businesses, especially among Black-, Asian-, and Hispanic-owned small businesses, could strengthen health care systems and access to care in communities where minority-owned small businesses and their employees are located.”
Indeed, the study noted that such disparities indicate barriers to health insurance for U.S. workers and their families, as well as advocated for policies that support small businesses providing health insurance.
“Addressing disparities in ESI can help close disparities in access to health insurance, especially where co-ethnic employment is common,” researchers concluded. “Our findings suggest the need for research that examines social and economic mechanisms that can increase ESI among small businesses. Policymakers can begin to ‘bend the curve’ by addressing the affordability and accessibility of ESI in small businesses.”
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