No Pot of Gold or Rainbow

When it comes to health care, small business owners are pretty pessimistic.

The rising cost of health care is one of the top issues for small business owners, ranking second only to the economy, a survey by City Business Journals Network found. At the same time, the health reform debate causes them a great deal of consternation. (City Business Journals Network, like Portfolio.com, is owned by American City Business Journals.)

A majority of small employers say they're very concerned that changes in the system under President Obama's reform proposals will fail to deal with rising expenses and will end up costing them more. More than half also say they're very worried reform is going to drive up the U.S. deficit, ultimately hurting their businesses.

The level of concern is even more pronounced for Republicans and many independents, the survey shows. The overall results are consistent with surveys taken by small business organizations.

"Small employers have the most to gain but they also have the most to lose" from health care reform, says Stephanie Cathcart, a spokeswoman for the National Federation of Independent Business.

On average, small business owners spend 18 percent more to insure workers than their large employer counterparts. Health insurance costs for family coverage at small businesses jumped 123 percent over the last decade.

Small retailers "are not at all sure that the legislation currently on the table will improve the health care system in the short and longer term," says Neil Trautwein, vice president and lobbyist for the National Retail Federation. "The current bills will likely increase employers’ coverage costs."