A Health and Human Resources Department report released Thursday says health insurance reform will lower health-care costs for small businesses.

Small businesses are disproportionately burdened by the financial strains caused by rising health care costs. On average, small businesses pay up to 18 percent more than large firms for the same health insurance policy. This difference is due in part to high broker fees, which can be up to 10 percent of premiums, and administrative costs that can be three times those in the large group market, according to a press release from HHS.

Nearly half of workers covered by a small business employer have insurance that limits the total amount the plan will pay for medical care and nearly one in 10 small business workers have a health plan that does not offer prescription drug coverage, said HHS.

Health insurance reform will bring down costs for small businesses by creating a health insurance exchange, providing a tax credit for small businesses that provide health insurance and preventing arbitrary premium hikes. Reform will also ensure Americans have stable, secure insurance coverage, limit out-of-pocket spending and eliminate caps on benefits, according to the report.

The National Federation of Small Businesses is approaching health care reform cautiously and remains opposed to employer mandates and a public option.

Visit www.HealthReform.gov to find out more.