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Posted on Wed, Oct 7, 2009 : 5:23 p.m.

Ann Arbor small businesses impacted by healthcare cost hikes, report says

By Tina Reed

For years, Downtown Home & Garden has offered to split the cost of health care benefits with its employees. It's good business, said owner Mark Hodesh.

Offering health insurance helps make the business more competitive for good workers and helps keep those workers healthier, he said.

But for all of those years, he's also seen the cost of his health care premiums rise well above the pace of inflation. With about six of his workers taking advantage of health care benefits, his business pays about $3,000 a month for those benefits.

It's just one local small business in Ann Arbor that's been negatively impacted by skyrocketing health care costs, said Kara Rumsey, an Ann Arbor resident and advocate for the Michigan interest group Public Interest Research Group in Michigan, or PIRGIM.

According to the report, small business health care premiums have doubled in 10 years and will double again in the next eight years, Rumsey said. In the report, she includes anecdotes from small Ann Arbor businesses like Abracadabra Jewelry & Gem Gallery and the Chelsea Flower Shop.

See the full report here.

Tina Reed covers health and the environment for AnnArbor.com. You can reach her at tinareed@annarbor.com, call her at 734-623-2535 or find her on Twitter @TreedinAA.