Dewey Matherly, executive director of Family Service Inc., a small counseling service in rural Gastonia, N.C., has never been able to pay his 15 employees rich salaries, but strives to make up some of the difference through generous healthcare packages. “I think it’s important,” says Matherly. “It’s one of the perks we can provide.” This kind of generous policy could be facing extinction, however. A recent study by Johns Hopkins University’s Center for Civil Society Studies found that all sorts...


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