Why does health insurance for small business cost more than for large busines?

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The risk is the same for the individual whether they work for a small company or a large company. So why should a small business have to pay more per employee?

Numbers………….unless they have a HUGE group of like business’s like the Unions, they cannot get the reduced rates.

Posted in: Small Business Health Insurance Comments(4) April 2010


4 Responses to “Why does health insurance for small business cost more than for large busines?”

  1. Stella Says:
    April 7th, 2010 at 9:52 pm

    Why would a dozen widgets cost less per widget at Costco or Sams’s Club compared to 1 widget at the local store?
    References :

  2. If you seek Amy Says:
    April 7th, 2010 at 10:27 pm

    Supply and demand – but many small businesses are banding together and forming co-ops so they can have better group rates.
    References :

  3. dlk Says:
    April 7th, 2010 at 10:50 pm

    Numbers………….unless they have a HUGE group of like business’s like the Unions, they cannot get the reduced rates.
    References :

  4. delina_m Says:
    April 7th, 2010 at 11:07 pm

    Larger groups can get better rates. At anything not just health insurance. Economy of scale, volume rules.
    References :

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