It is a huge, huge problem.
These plans are not truly employer sponsored. Once the employee writes the check, the employer really has no more role. From that point on it looks to the employee like an IRA.
Small business owners need to reach a point of equilibrium where credit card usage is balanced with other financing methods.
Not enough are saving. They are afraid of the costs [associated with setting up and administering a plan.] For many, it's also a financial issue. They are not at the point yet where they have the money to set aside [for future living expenses].
Obtaining adequate financing is the lifeblood of every small business. Considering the concerns of small business owners about the economy, it's a comfort to see that so many of them feel confident about their capital options.
The benefit primarily is that they are easy to set up. They are also much lower-cost [than the 401(k) plans offered by many larger corporations].
It is time, once and for all, for small businesses to be put on equal footing with large businesses when paying for health care.
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