Small business owners need more insurance information, for they are struggling to both provide coverage and determine what plan would best fit their employees’ needs, according to the National Association of Insurance Commissioners.

About 64% of small business decision makers say they lack confidence when picking a health insurance policy to meet their budgetary and employee requirements, according to the organization representing the states’ insurance commissioners. The survey, conducted between July 22 and 31, was completed by 500 small business decision makers.

One-third admitted that they cannot afford to provide health insurance to their employees.

Roger Sevigny

A clear gap was evident for owners in understanding the fiscal responsibilities associated with offering health insurance. Exactly 60% said they are not confident they understand the tax implications of paying for a portion of their employees’ health insurance premiums. Only 27% say they understand all the factors that can affect their small group health premiums, according to the survey.

“In this economic environment, small business owners need to be especially mindful of any decision that will affect their financial future,” said Roger Sevigny, NAIC president and New Hampshire insurance commissioner, in a statement. “Now, more than ever, it is important they get smart about their choices and consider the implications that making a bad decision could have on their business and their employees’ future.”