A new health insurance study has found that small businesses in America, especially in the state of Utah, are finding health insurance coverage a big dilemma.

The study found that out of the 300 small businesses in the state, only 40% offered health insurance coverage to its workers.

Tony Caputo has 30 workers, but is unable to afford health protection: “I wish I could, but I can't,” he said. Caputo thinks the government should take the lead. “If you want things, you have to pay for them,” he said.

Betsey Burton, owner of a bookshop, whose health costs jumped significantly to 20%, commented: “It [the rising cost of health insurance] is unsustainable. There is no way you can make a profit in a business with a low profit margin like the book business at that rate.”

The situation is so dire, that small firms are ready to buy into bold reform proposals, including a public health insurance option, so they can offer their employees cover and still have a chance of turning a profit.

However, the survey revealed that 67% support a shared responsibility among the healthcare sector, firms, the government and individuals. Many believe that the healthcare reform will get the economy up and running again.

The study

The study displayed a range of feelings towards the health insurance industry and the government, and where the responsibility lies.

46% believe that businesses that don't offer health insurance should be required to pay something to cover their workers, although 40% say no contribution should be required. Of those who agree a contribution should be required, more than half believe it should be less than 5% of payroll.

57% say their firm has a responsibility to provide health coverage for its employees and 64% say the healthcare reform is important to getting the economy back on track.

67% say it is important for individuals, employers, insurers, the government and healthcare providers to share the responsibility for making healthcare more affordable.

77% support a scheme to establish a minimum standard of protection for health insurance benefit packages in order to facilitate comparison shopping in the marketplace, ensure access to medical care, and protect people from financial risk.

88% of Utah small companies not offering health insurance say they can't afford to, while 79% of those who do offer it say they are really struggling to do so.

However, the main priority for Utah small companies in healthcare reform is controlling costs, followed by having coverage that is guaranteed and covers everybody.

John Arensmeyer, CEO and founder of Small Business Majority and the organization that commissioned the research stated: “What comes through loud and clear is the health care crisis is huge, it's crushing, and something needs to be done right away.”

Judi Hilman, executive director of the Utah Health Policy Project, said the small business community's struggle with increasing health care expenses and its eagerness to tackle the problem isn't surprising.

“Small businesses experience firsthand the current flaws in our system and we believe their perspective must be at the heart of reform efforts moving forward.”