Small Firms Squeezed by Health Costs

A case in point is Kent Matlock's PR firm, Matlock Advertising & Public Relations in Atlanta. Premiums shot up by a third. So he and other senior executives took 10 percent to 15 percent pay cuts to salvage affordable insurance for their employees.

"What we attempt to do is make sure that they have health care," says Matlock. "We find that is critical."

And harder to accomplish — as each passing year sees double-digit premium increases, with no end in sight.