New Poll Shows California Small Businesses Back Comprehensive Health Care Reform

* 80% of those who expressed an opinion felt that employers should pay something to provide healthcare to their employees -- four times as many as those who felt that employers should not have to contribute anything (20%).
* 75% ranked the availability of affordable healthcare as extremely or very important.
* 57% see health care financing as a shared responsibility among individuals, employers and government – three times as many as do not (19%).
* 55% were in favor of paying into a statewide pool that would enable their employees to obtain coverage at favorable rates – over three times greater than those opposed (17%).

Moreover, a substantial plurality (near-majority) said that they favored both the legislation (AB 8) proposed by Assembly Speaker Fabian Núñez and Senate President pro Tem Don Perata as well as the proposal made by Governor Arnold Schwarzenegger. A small plurality said that they favored the single-payer plan (SB 840) authored by Senator Sheila Kuehl.

* Governor’s proposal -- 47% in favor; 31% opposed
* AB 8 -- 47% in favor; 33% opposed
* SB 840 -- 42% in favor; 40% opposed

What this shows is that California’s 3.2 million small business owners, who employ over 50% of the private sector workforce, are fed up with our healthcare crisis; they want bold action now, and they are more than ready to be part of the solution. Other business groups, who focus their energies on opposing all meaningful healthcare reform, do not speak for the millions of California’s entrepreneurs who know that the inability to obtain affordable healthcare for their families and their employees severely impedes California’s economic progress and hampers their pursuit of the American Dream.

When traditional small business organizations argue for maintaining the status quo, they fail to consider that:

* Over 3 million small business employees in California are uninsured, including almost 600,000 sole proprietors.
* Health insurance premiums in the California small group market rose more than 50% between 2003 and 2006.

And, in their ideological zeal to support a broken system for which the market has failed, they forget that the success or failure of a business venture should depend upon innovation, product quality and hard work - not the cost of providing, or not providing, health insurance.

The Small Business for Affordable Healthcare survey is believed to be the only comprehensive survey of small business healthcare attitudes that has polled a random sample of small businesses across the state, regardless of their political views. The political affiliations of the survey respondents who chose to state them cut across party lines: Democrat-38%; Republican-30%; Independent-29%; Other-3%.

The survey responses also demonstrate widespread support for many of the other provisions in the pending California healthcare reform proposals:

* 75% favored requiring health insurers to spend at least 85% of their premiums on care -- vs. 8% opposed.
* 70% favored offering health insurance regardless of health status – vs. 9% opposed.
* 67% favored requiring insurers to offer coverage to small businesses regardless of the workforce’s health status – vs. 10% opposed.
* 63% favored a requirement that employers offer Section 125 plans – vs. 11% opposed.
* 62% favored requiring insurers and HMO’s to get state approval prior to raising premiums – vs. 15% opposed.
* 58% favored expanding current public health programs – vs. 15% opposed.
* 56% favored setting a timeline for hospitals and doctors having electronic medical records – vs. 10% opposed.

Other key survey findings:

* 74% agreed that health insurers and prescription drug companies are making healthcare unaffordable because of their power to dictate prices – vs. 11% who disagreed
* 58% felt that more people would start businesses if they knew they could get affordable health insurance without regard to pre-existing conditions – almost three times those who disagreed (21%).
* 46% were in favor of a one percent sales tax to make healthcare more affordable – vs. 35% who were opposed.
* 43% agreed that it is unfair for businesses that provide coverage to compete against those who do not, and that a minimum employer contribution would level the playing field, vs. 25% who disagreed.
* 32% favored mandating that individuals purchase health insurance – vs. 39% opposed.
* 22% believed that health insurance should be the sole responsibility of individuals, not employers or government – vs. 2.5 times as many who disagreed (55%).

Strikingly, these numbers only changed slightly among small business owners who are currently not offering health insurance – demonstrating that most small business owners want to do the right thing and ensure that their employees have health insurance – so long as it is affordable.

Comprehensive healthcare reform is long overdue. The status quo is unacceptable. California is once again in a position to lead the nation as a beacon of opportunity. We must enact legislation in California based upon the following principles:

1. Coverage for all,
2. Cost reduction,
3. Affordability for employers and individuals,
4. Non-discrimination based on health risk or type/size of business, and
5. Shared, equitable responsibility by all stakeholders, including businesses, government, individuals and the healthcare industry.

The scientific telephone and on-line poll of 506 randomly-selected small business owners and managers was conducted between August 2-15, 2007, by Core Strategies, an internationally-respected market research firm based in Laguna Hills, California. The Survey has a 95% confidence interval and a 4% margin of error.

The full survey report, along with other back-up documents, is available at www.smallbusinessforhealthcare.org.