- Providing world class service and value for employee benefit group plans since 1987
There is one thing that businesses can do to increase the interest of those seeking a job within the same industry. That is by offering a cheap yet comprehensive group health insurance plan. This also helps to increase the morale in the work environment and the longevity of your employees’ stay with your business.
While there are many advantages for businesses that offer group health insurance plans, some owners are afraid to purchase insurance and employee packages due to the cost. Fortunately, it isn’t hard to find affordable group health plans, especially if you go through a broker. They’ll work with you and act as the middleman between you and the best insurance carriers around. They’ll modify plans according to your employees’ needs and make sure they negotiate to get the cheapest premiums and rates.
According to the 2016 Employer Health Benefits Survey, the average premium for employee-sponsored group health insurance for family was $18,142 for the year. The employee average was $5,277. That is a slight 3% increase from the prior year.
There are several things that affect the cost of group health insurance plans. Local, state and federal laws even have an impression on the cost. The demographics of the employee, the location, and the carrier also affect your quote for insurance.
All health insurance plans fall under a “metal” category. These categories are bronze, silver, gold, platinum, and catastrophic. The bronze category is the cheapest while catastrophic is the most expensive. The catastrophic category isn’t used nearly as frequent as all other metal categories.
An experienced, licensed insurance broker is capable of finding the cheapest health insurance plans while still meeting your needs and appeasing the ACA and all other laws. Staying in compliance with the laws will help your business avoid penalties. It will also qualify your business for tax breaks and incentives. Not only will a broker do whatever they can to keep the cost of your group health insurance plan low, they’ll make sure it still appeals to all the needs of your employees. Hiring them is the easiest and quickest way to get what you want out of a group health insurance plan.
On average, employers typically cover about 70 to 80 percent of an employee’s health insurance premium. The exact percentage can vary depending on the size of the company, the type of plan offered, and the location. Small businesses may contribute slightly less while larger companies often cover a higher portion of the cost. Many employers also require employees to pay part of the premium for dependents, which can increase the employee’s share of the total cost. Overall, employers aim to balance affordability for employees with managing the company’s overall benefits budget.
Group health insurance costs typically change annually based on medical cost trends, inflation, claims experience, and insurer pricing models. Many employers see rate increases each year as healthcare costs rise across services and treatments, and insurers adjust premiums accordingly.
Most employers cover a significant portion of the premium for their employees. In many cases, companies pay between 50 percent and 75 percent of the total premium, while employees contribute the rest through payroll deductions. This shared approach helps keep coverage more affordable for workers while allowing employers to offer competitive benefits.
Employers have flexibility in setting contribution levels. They can shift a larger share of premiums to employees or redesign plans with higher deductibles. However, they must balance cost savings with maintaining attractive benefits to retain and recruit talent.
Todd Taylor oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.
We just started working with Taylor Benefits and could not be happier. Todd gave us quite the education as well as some time saving tools to help us manage our HR and save money too. We are looking forward to a long relationship!”
-Carol, Accounting Manager, recruitment marketing company, Campbell, CA
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