Small business owners in Iowa would strongly support a greater government role in developing a quality public health insurance option for employees, according to a study released this morning by the Iowa Main Street Alliance.

The report, “Taking the Pulse of Main Street: Small Businesses, Health Insurance, and Priorities for Reform,” is based on a survey of 1,200 small businesses in 12 states, including Iowa. Ninety Iowa small businesses participated in the survey, which was conducted by The Main Street Alliance, a network of state-based small business health-care coalitions formed in 2008, and the Northwest Federation of Community Organizations.

The survey found that only 34 percent of respondents offered health insurance to their employees through their businesses. Of those companies, 43 percent provided coverage only to the owner, leaving more than half of small business employees without coverage through their companies. Among Iowa respondents, only 16 percent of small businesses offered coverage to employees, and 26 percent of small business owners had coverage for themselves through their business.

Sixty-three percent of all respondents indicated a willingness to contribute 4 to 7 percent or more of total payroll costs in place of current health insurance costs to guarantee quality coverage for employees and themselves.

“In sum, small business owners are willing to contribute to make the health system work if they believe the system design makes sense, if financial responsibility is shared broadly and fairly, and if dollars are channeled toward needed care rather than third-party profits,” the report concluded.

The Iowa Main Street Alliance said in a release it believes that small business support will be critical to advancing President-elect Barack Obama’s goal to create a public plan as an alternative to private health insurance.

“As a small business person, I’m willing to contribute for health care that puts service and value ahead of insurance industry profits,” said Bill Wheeler, owner of Hiland Park Hardware in Des Moines and a member of the Iowa Main Street Alliance. “I believe we need a quality public option so we can’t be held hostage by the industry any more.”

Click here to read the survey.