Businesses could play the game of offering benefits to employees, but then control their work hours so they are not eligible for them. Use part time employees instead of full time. I recall one woman who had transitioned to part time, and gave up benefits in the process, which was okay as she had health insurance through her husband. When the business was busy and she worked extra hours to help cover, she was yelled at and told not to do that. She was confused as she thought that they would be thankful she was helping fill the need. Being an employer myself, I explained to her that the company wouldn't want her to work those extra hours, even if they desperately needed the help, because she would then become eligible for benefits. So once she reached her maximum hours for the week, she had to stop and go home. No matter how short handed they might be.
At our business we prorated some benefits, such as personal leave and vacation time, so even a person working 18 or 20 hours per week would get something. But not health insurance. In any case, we had low turnover due to the way we treated all employees. Plus we didn't have to monitor hours as closely, so could schedule to fit the need, rather than to limit benefit costs. Didn't have to spend time and money hiring and training new people very often, either. I saw that as being very fair and cost effective. Plus, having a well trained and experienced staff made the customers happy. We were successful and were able to grow; the other place struggled and had to seek a buyout partner.
Insurance and other benefits are critical if you want to hire and retain good people. If you want to make short term profits at the expense of a company's future viability, and don't care about the welfare of your employees and their families, go for the cheapest route.