Small Business Faces Higher Health Insurance Premiums in '09

As if a flat economy weren't enough to dread in 2009, this Wall Street Journal article brings even more bad news for small business owners—higher health insurance premiums.

"As small businesses begin to receive their annual renewal notices, employers and health-insurance brokers in the South, Midwest and California report noticeably steeper rises," the article says, citing health insurers' shrinking profit margins as the reason for the increase. "Some premium increases being quoted to employers are double those quoted just a few months ago."

You're facing your own shrinking profit margins, so how are you expected to cope with the increases? Now is a good time to reassess your health coverage. Look at lower-benefits options (or higher deductibles). It may not be the most popular decision among employees, but they know that it sure beats no coverage.

Whether with healthcare costs or any other problem facing your business, getting employees involved in the problem means they can help be a part of the solution. Be open and honest with your employees about the problems your business is experiencing in this economy—and don't be surprised when they respond with great ideas.