Like the city of Flint, where his family's auto dealership was founded 95 years ago, Chris Graff, general manager of Hank Graff Chevrolet, considers himself a survivor.

His Davison dealership near Flint is hanging on despite a crumbling state economy. The company has worked hard to hang on to what he calls a rich package of health benefits for 135 employees.

"We've had double-digit increases in health insurance for many years until recently, and we do everything we can to keep it under control," Graff said.

But as much as he wants more affordable insurance, Graff worries that federal reforms will drive up costs more.

Those are some of the bigger questions officials pushing federal health care changes face as they look to garner support from small businesses, which employ more than half of the nation's workers.

"Business is really confused about the details of the health reforms," said Jennifer Kluge, executive vice president of the Michigan Business & Professional Association. "How is this going to affect their ability to employ people? How is this going to affect their insurance coverage?"

Bills before the U.S. House and two Senate committees differ on whether they would require businesses with 25 or more employees to provide health insurance and whether small businesses would get tax credits if they provide a certain amount of health insurance.

Another issue is a proposal that would create a government health insurance program that would offer affordable plans to some low-income people and workers at small businesses.

Aletheia Henry, director of the Democratic Party's Michigan office, said reforms will give businesses more affordable options in a state where only 41% of small businesses offer health insurance to their employees, down 13% from 2000, she said, citing Obama administration research.

Those differences aside, many small-business owners want changes. Unable to negotiate discounts the way big companies do, small businesses pay more for coverage, have higher administrative costs and are less able to offer health insurance.

Small businesses paid $6,500 in 2009 for health insurance for each worker, compared with $2,979 for large businesses, according to the National Small Business Association.

Mark Hodesh, owner of Downtown Home & Garden, a 100-year-old home, garden and kitchen wares business in Ann Arbor, supports tax credits for small businesses providing insurance or subsidies for employees at small businesses to help buy a plan.

"I'm hoping to get back to where we can afford to pay just about everything we'd like for people," Hodesh said.

The company's health plan cost $130 a person a month in 1998; now it's $375 a month, he said. The company pays three-fourths of the monthly premiums. Six of 11 employees participate in the company plan; the other five either have coverage through a spouse or go without health insurance.

"Health care is going to bankrupt small business," he said. "I can't raise the price of a frying pan to $50" to help cover health insurance costs, he said. He sees health insurance as a way to create a stable workforce.

So does Graff.

"We try to make this a very good place to work," he said. "We're blessed to have a long-term, tenured staff" and good health benefits are one reason why, he said.

The company has worked with Group Associates, a Bingham Farms benefits-consulting firm, to find ways to retain benefits but hold down costs. Last year, it switched from Blue Cross Blue Shield of Michigan to HealthPlus of Michigan.

Graff isskeptical the federal government has the ability to make the necessary fixes. The recent cash-for-clunkers program, he said, was fraught with computer problems, delayed guidance to implement the program and numerous changes made with little notice, he said.

"If the administration of health insurance is anything like cash for clunkers, we're all gonna die," Graff said.

"These aren't evolutionary changes; they are revolutionary changes," Graff said of federal proposals. "I could be wrong on this, but my personal feeling is that the pros and cons of the system they are proposing will be worse in the long run than the pros and cons of our current system."