Choosing your company’s health insurance can be complicated. But it doesn’t have to be. The cost of the premiums, deductibles, and out-of-pocket payments are some of the factors you’ll want to consider when choosing a health insurance policy for your business.
Health insurance, while an essential need for people, can be very expensive. It can be especially difficult to find affordable healthcare if you are a small and growing company.
However, there are different health insurance options available depending on your specific needs and preferences.
We offer employees health insurance for North and South Carolina with competitive coverage and low monthly premiums.
Employees are an important part of any organization, and as such, the employees’ health care should be a priority.
The cost of health insurance can make or break an organization as well as the employees themselves.
The cost of health insurance is a big concern for many people who work for a small or growing company with a low budget.
However, several factors go into determining the total cost of a health care plan.
This article will look at the average cost of employees’ healthcare and many factors affecting the exact cost of employees’ healthcare insurance.
Read More: Employee health insurance for small business
How much does it cost to offer health insurance to employees in the USA?
According to the “Kaiser Family Foundation survey,” employers pay about 83% of health insurance for single coverage and 73% for family coverage.
In 2020, company-provided health insurance averaged $7,470 a year for single coverage.
Employers contributed 83% of the cost on average, or $6,200 a year. Employees paid 17% of this amount on average, or $1,270 a year.
A standard family employer-sponsored health insurance plan in the United States is $21,342 per year.
Employers contributing an average of 73% or $15,579 per year leaves the remaining 27% or $5,763 between you and your spouse to pay(employers).
How has the average cost of employer-paid health insurance changed?
The average cost for single and family coverage has increased to about 4% in the last year(2020), according to KFF.
Do small businesses offer health benefits to their employees?
Yes, 55% of small companies and 99% of large companies offer health benefits to at least some of their workers, with an overall offer rate of 56%.
That is considerable, though it’s not much.
And the average deductible among covered employees in a plan with a general annual deductible is $1,644 for single coverage – Source.
How much does health insurance cost for a small business per employee?
When you consider their total compensation, the average hourly wage for all workers is $37.73 in the United States of America.
According to the study, the average cost for an employer who pays employee benefits for government and state employees is about $19.82 per hour.
In addition, the average salary and wage they pay were about $32.62 an hour.
How much is health insurance per month?
According to a 2020 report, the average national cost for health insurance is $456 per month for individuals and $1,152 monthly for a family. This can make choosing a health plan difficult because they vary in price –Source.
Premiums for Single and Family Coverage?
- The average premium for single and family coverage in 2020 is $7,470 and $21.342 per year, respectively. [Source].
- On average, the annual premiums for covered workers in HDHP/SOs is lower for single coverage ($6,890), and family coverage is ($20,359) of the total average premiums. The average premiums for covered workers enrolled in PPOs are higher for single ($7,880), and family coverage is ($22,248), which is more than the overall average premiums [Source].
Your company’s location is another factor affecting employees’ health insurance costs?
- The average premiums for covered workers in the Northeast are higher than in the South. The average premiums for covered workers with family coverage are relatively high in the Northeast. Southern and Western States see a lower cost [Source].
Your industry determines your employee’s costs.
- A lot of industries are seeing increased premium rates. But the average rate varies from industry to industry, so this depends on your work field. The premiums of covered workers in the Manufacturing, Retail, and Agriculture/Mining/Construction categories are relatively low, and that of Health Care workers is relatively high. [Figure 1.4].
Summary of the cost of employee healthcare insurance cost.
The cost of employee healthcare insurance will vary based on the company, profession, and benefits offered.
Health insurance can be broken down into two standard categories: individual and family employee health insurance.
Individual health insurance is the cheapest and usually does not cover dependents.
Family health insurance covers a family and any dependents and usually is more expensive than individual health insurance.
Employer-sponsored health insurance is beneficial for employees because it is often subsidized by the company and can provide more coverage than non-employer-sponsored family or individual health insurance.