“For small businesses, a hesitancy to hire”

By Joshua Archambault
February 14th, 2011

An illustrative piece in the Boston Globe today by Megan Woolhouse about the high cost of running a small business in Massachusetts. This is an issue that Pioneer has been researching for years.

Pioneer has released numerous papers discussing possible reforms to the programs that are most burdensome. The most recent was “Creating Jobs: Reforming Unemployment Insurance in Massachusetts.”

From my perspective, one of the most expensive costs was only mentioned in passing in the article.

Struggling to survive in 2008 and faced with rising health care costs, the Olsons eliminated health care coverage, offering employees a one-time payment of up to $5,000.

The reform passed in 2006 promised to help small companies afford health insurance. During implementation, policy decisions were made that have harmed small businesses. I fear the example set here by Marathon Tool is just the tip of the iceberg for small companies facing annual increases of 20% in their health premiums.