Small businesses that do not offer health insurance to their employees want to, but choose not to because of high costs, complications and red tape, a new study found.

The study of 343 small business owners and managers, sponsored by the U.S. Public Interest Research Group, a nonprofit consumer advocacy group, suggests that those small businesses who offer coverage to their employees consider it a “moral obligation,” rather than a smart business strategy, designed to bolster productivity, as well as attract and retain talented workers.

Small business concerns are at the center of the debate over health care reform being waged in the aisles of Congress and at the White House, where employer mandates to provide coverage or face a penalty are garnering increased support. The majority of study participants (76%) of small business owners who took the survey felt that their interests were being addressed in Washington’s ongoing discussions on health care reform.

The majority of the study’s participants (78%) who do not offer coverage would like to. Four in five (80%) cite cost as a barrier to providing employees with health benefits. Another 17% of survey respondents say coverage isn’t offered because it is too complicated.

Most small businesses (55%) that offer health benefits see it as a tool for recruitment and retention tool, while another 27% cite increased employee productivity as a reason to offer coverage, according to the survey.