Small Businesses Say Health Care Reform Will Bring Increased Costs, Complexity

TriNet`s Quarterly HR Trends Survey Reveals Pulse of Nation`s Small Businesses
SAN LEANDRO, Calif.--(Business Wire)--
Nine out of 10 small business owners say it is important that health care reform
offer choices in plans but many worry that change will bring increased costs (71
percent) and unnecessary complexity (56 percent), according to a survey TriNet
recently conducted of more than 200 small businesses across the country.

"Health care is already a significant expense for small business owners," said
Burton M. Goldfield, TriNet`s president and CEO. "These results confirm what we
hear from our small businesses clients: entrepreneurs want choices when it comes
to health care programs, but their success will be hampered if reform results in
annual double-digit cost increases and administrative nightmares that divert
their focus from growth and revenue."

TriNet, which releases human resources surveys on a quarterly basis to gauge
trends among small businesses, learned that nearly 63 percent of the respondents
said their health care costs rose between 6 percent and 20 percent in the last
year. Of the respondents (90 percent) who pay at least a portion of health care
premiums for their employees, 76 percent said health care insurance consumes
between 1 percent and 10 percent of business revenues with 15 percent saying
health care costs 11 to 20 percent of total revenues.

Among those respondents who think the costs of health care will increase with
reform, 44 percent indicated they might reduce the level of benefits coverage to
offset the added costs. The next largest group of respondents said they would
look to reduce employee salaries and wages (21 percent) or staff levels (20
percent) to cover additional expenses.

When asked who should pay for health care insurance for employees of small
businesses, 56 percent said it should be split between employers and employees,
while 30 percent believe the government should also share the burden with
employers and employees. If the government were to play a role in providing
assistance to small businesses, 44 percent would like to receive tax credits for
their business while 30 percent would prefer subsidies for a portion of the
costs.

While 90 percent said they want a choice in plans, respondents were divided on
what options reform should offer; 34 percent think options should include
preferred provider organizations (PPOs) while 22 percent want universal programs
run by the government and funded by business and personal income taxes.

As an advocate for small businesses, TriNet encourages Congress to not discard
efforts that assist in keeping health care costs down, including cost
transparency, preventive care and employee responsibility. Further, small
businesses benefit when they have the option of meeting their HR needs through a
single source.

"Just as people don`t want to visit multiple supermarkets to purchase cheese,
meat and bread, small companies often want to work with a single vendor to
obtain human capital needs such as benefits, payroll and workers compensation,"
Goldfield added.

According to the survey, small business owners are turning to one another (20
percent), Professional Employer Organizations (PEO) (16 percent) and Chambers of
Commerce (13 percent) as sources of information about health care reform. Only 3
percent consider the government as a source of information they would turn
toward for guidance regarding the reform.

A white paper that looks deeper into the TriNet Quarterly HR trends report is
available online at:
http://www.trinet.com/documents/white_papers/TriNet_WP_2009_HRTrends_Q3.pdf.

About TriNet

TriNet serves as a trusted HR partner to small businesses throughout the United
States and Canada. TriNet`s technology specializes in helping small businesses
reach their corporate goals and become destinations for top talent, enabling
them to compete successfully with larger, more established organizations.
TriNet`s comprehensive offerings include HR administration, online employee
benefits administration and support, employer risk management, payroll
processing, tax compliance, workers compensation, group health benefits, and
strategic human capital consulting services. For more information, please visit
http://www.trinet.com.

TriNet, Ambitions Realized and the TriNet logo are registered trademarks of
TriNet. All other trademarks, service marks, registered trademarks, or
registered service marks are the property of their respective owners.

TriNet Group Inc.
Lisa Eskey, 510-875-7235
lisa.eskey@trinet.com
or
Fleishman-Hillard Inc.
Brooke Burgess, 916-717-3919
brooke.burgess@fleishman.com

Copyright Business Wire 2009