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Tuesday, 31 October 2017 06:56

How do Your Benefits Stack Up?

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The Kaiser Family Foundation has released their 2017 Annual National Employer Benefits Survey.  This survey compares employer-sponsored health benefits for private and nonfederal employers with three or more workers.  
 
Do you know how your current plans stack up to the competition?  Fall River uses this Kaiser survey and other local data to offer complimentary benchmarking consultations to ensure your specific benefits and contributions are attracting/retaining the top talent in your field. To sign up for a benchmarking session, existing clients can contact their Client Manager, and others can click here to get started.  

Employer sponsored health plans cover approximately 151 million non-elderly people.  The average premium for employer sponsored plans are $6,690 for single coverage and $18,764 for family coverage.
 
Small Business Statistics (3-199 workers)
The cost of covered premiums varies a lot by industry and size of the employer.  The study points out that workers in small firms contribute a higher average percentage of premium. Also, firms with relatively high percentage of lower wage workers contribute a higher percentage of the annual premium.
 
Types of plans that employees are selecting (companies are not required to offer all types of plans) 
  • 45% are enrolled in a PPO plan
  • 23% are enrolled in a HDHP plan
  • 18% are enrolled in a POS plan 
  • 14% are enrolled in a HMO plan
Over the past decade the percentage of workers at small firms that offer health benefits to at least some workers has decreased from 78% to 73%.  The offering of benefits fluctuates by firm size.  Small firms have a challenge to offer rich enough benefits to attract the top talent but also keep in mind the bottom line.   

Eligibility vs Elected Coverage 
  • 79% of workers are eligible for coverage
    • of those workers, 78% enroll in health coverage
  • Resulting in 62% of workers in small firms enroll in coverage through their employer
Smaller firms frequently consider offering some sort of supplemental benefits. These supplemental benefits are not always paid for by the employer and could be considered a voluntary option for employees.  Giving employees an option to add additional lines of coverage could greatly enhance small firm’s chances of attracting the top talent.
 
Supplemental benefits among firms offering health coverage
  • 67% of small firms offer dental insurance
  • 47% offer vision insurance
  • 23% offer a critical illness policy
  • 16% offer a hospital indemnity plan
  • 16% offer a long-term care plan 
Conclusion
The Kaiser Family Foundation didn’t see much of a change in cost sharing and premium increases are modest. Specifically, for small businesses, we continue to see a substantial disparity in the average premiums and contribution amounts. Unfortunately, a large share of covered workers in small firms must pay a meaningful share of the cost of family coverage. The question often pops up of whether this is a practical source of coverage for the dependents of these workers. 
 
The future of the ACA will play a key role in the future health care coverage. Fall River continues to update our clients via our webinars and in person consultations on both ACA changes and other benefits trends.  Please contact us if you are interested in a complimentary benefits consultation to understand how your benefits stack up to other employers, and also consider attending our 2018 Benefits Planning webinars as well.

Sources:

http://files.kff.org/attachment/Summary-of-Findings-Employer-Health-Benefits-2017 

http://files.kff.org/attachment/Report-Employer-Health-Benefits-Annual-Survey-2017

 
Read 150 times Last modified on Tuesday, 31 October 2017 07:17