Many Small Business Employees May Be Close To Losing Health Insurance

Before the COVID-19 pandemic, 60% of small businesses were able to offer health insurance coverage to their employees. However, in March 2020, almost half of these small businesses were forced to pause or cease operations when the World Health Organization (WHO) declared the COVID-19 outbreak a global pandemic. 

In response, the federal Paycheck Protection Program has aided a lot of small businesses. Those who received support were much less likely to cut insurance coverage than those who did not receive PPP support. The support was crucial since companies reported very little relief from health insurers. According to NEJM Catalyst, only 5% of those surveyed stated that they received benefits or refunds from their insurance carriers.

The PPP initially ended on August 8th, with debates going on in Congress to decide if there should be another relief package and how much it should be, while small businesses continued to struggle. Fortunately, Congress finally agreed on an additional $284.5 billion in PPP funds in December 2020.

The funds were available for "first draw" PPP loans, which were directed towards businesses that did not take advantage of the loan last year. "Second draw" loans will also be available soon through the same fund for those who accessed the program last year. Small businesses will initially access the funds through community development financial institutions (CDFIs), then through other lenders shortly after that.

People have focused a lot of attention on the unprecedented numbers of wage cuts, job losses, and furloughed workers but have not paid the same amount of attention to employee benefits. However, since workers rely heavily on employer-sponsored health insurance, the economic crisis could very much likely lead to an insurance coverage crisis as well, making it vital to pay more attention to this matter. 

Work with Export Portal Today

During times of such uncertainty, it is best to collaborate with an innovative, trustworthy, and informative partner who can advise you accordingly. This is where Export Portal comes in. We have many years of experience in the international trade industry and are keen on supporting our users during these trying times. If your business is struggling to remain afloat, make sure to check out our site today! Our experts will work with you to help identify a viable solution.