- Providing world class service and value for employee benefit group plans since 1987
More Tennesseans get their health insurance from their employer than from any other source. The next largest group gets coverage from TennCare, the state healthcare exchange. Many employers offer at least two options to their workers.
Still, the share of the premium that employers pay has been dropping. However, large companies must comply with the affordability provisions of the Affordable Care Act, which stipulates that staff members can’t be required to pay more than 9.12 percent of their gross income toward the cost of their coverage. In addition to premium increases, employees pay higher deductibles in Tennessee than they did ten years ago, reflecting the national trend.
High-deductible health plans are one method that employers are using in Tennessee and elsewhere to hold down the cost of healthcare insurance, both for the company and the subscribers. A high deductible plan must meet specific IRS guidelines to permit the subscriber to establish an HSA (health savings account). Other programs with high deductibles don’t qualify.
In 2023, HSA contribution limits are $3,850 for an individual or $7,750 for a family, with an additional allowance for individuals over 55. Participants contribute pre-tax dollars to their HSA, and many receive contributions from their employers. The funds can pay for qualified medical expenses, and funds not used in the year contributed can roll over indefinitely.
Small companies don’t have to provide healthcare assurance for their eligible workers—as long as the company has fewer than fifty full-time employees. Still, those businesses that want to can find help through the ACA SHOP (Small Business Health Options Program), which offers resources, plans, and support. Your Taylor Benefits consultant can help you navigate through small business medical insurance options.
For organizations with fewer than 25 workers, tax credits are possible. However, there are other requirements (a lower-wage workforce and the company needs to pay a certain percentage of the premium cost to qualify for tax credit), so whether you’re a full-time or part-time crew member, your specialist to see if your company qualifies to offer health protection for small businesses.
One of the most-wished-for benefits after health insurance is paid time off. The U.S. Department of Labor estimates that paid days off work (sick time, vacation days, personal days, and holiday pay) equals almost seven percent of total compensation. Other benefits add the equivalent of 23 percent of wages. Paid time off is not required in the U.S., although ten states require paid sick days (not Tennessee.) Nonetheless, the Bureau of Labor Statistics estimates that three-quarters of private industry employees (and virtually all public sector workers) have some paid vacation time, and 79 percent receive some paid holidays.
Taylor Benefits has over 25 years of experience writing custom team healthcare plans for residents. At Taylor Benefits, we have helped countless groups identify and obtain the collective healthcare insurance they need at the price they want. We write our packages ourselves without being constrained by other assurance carriers or programs on the market, including the state and federal exchanges. As a result, our programs are broad, comprehensive, and, most importantly, affordable.
We offer the following group services options:
The following are answers to some frequently asked questions regarding Tennessee health protection coverage:
Taylor Benefits can connect you with some of the major Tennessee health protection companies in the country. You can always count on us to get you a fantastic deal when you require large group coverage.
We work with the following companies:
Small business owners in Tennessee can choose various options to assist their workers with medical coverage.
The most common choice is for the employer to purchase a small group healthcare package to cover the medical services the workers need. In many cases, the employer pays a portion of employees premiums.
The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) is another option for your business. Employers contribute a set amount of money to assist workers in obtaining individual, qualified plans.
Corporate Coverage Health Reimbursement programs combine insurance with an additional monthly allowance to cover deductibles, copays, and other costs.
Some businesses choose self-funded health protection as a means of lowering costs and improving cash flow. In this scenario, the company pays directly for medical expenses the workers incur. Employees present medical bills or prescriptions to their employer, which pays them. The risk of a few large claims makes this a less-popular choice for small companies than for large ones.
Finally, Associate Health Plans (AHPs) are also considered risky for small businesses, but with less exposure than self-funding. An AHP is formed when a team of smaller firms within an industry or location band together to purchase a larger group health plan.
Taylor Benefits Agency provides Tennessee businesses and employees with the following coverage options:
Employees can contribute any amount to group medical benefits programs. Of course, large companies must ensure that the premium share the employees pay is not more than 9.12 percent of their gross income. Insurance costs are low in Tennessee compared to many states, and employers pay an average of 76 percent of the cost for workers.
Group health insurance is a type of health coverage that is provided to a group of people, typically through an employer. It offers benefits such as medical, dental, and vision coverage to employees and their dependents. Group health insurance plans are often more affordable and comprehensive compared to individual health insurance policies.
Group health insurance in Tennessee works by employers purchasing coverage for their employees. The employer selects a plan from insurance providers and contributes a portion of the premium cost. Employees may also contribute a portion of the premium, and the insurance typically covers medical expenses for the entire group.
In Tennessee, businesses can choose from a variety of group health insurance plans, including HMOs, PPOs, EPOs, and POS plans. These options offer different levels of coverage, provider networks, and costs to meet the needs of employers and employees.
The average cost of group health insurance in Tennessee varies depending on factors such as the size of the group, coverage options, and location. On average, small businesses can expect to pay around $300 to $500 per employee per month for group health insurance in Tennessee.
Offering group health insurance for employers in Tennessee can provide various benefits, including attracting top talent, improving employee retention, and potentially lowering overall healthcare costs. Additionally, it can enhance employee satisfaction, promote a healthier workforce, and demonstrate a commitment to employee well-being.
Group health insurance plans support rural businesses in Tennessee by providing affordable healthcare options for employees, attracting and retaining top talent, and promoting a healthier workforce. These plans can help small businesses in rural areas compete with larger companies and ensure their employees have access to quality healthcare benefits.
To reduce group health insurance costs in Tennessee, consider implementing wellness programs, shopping around for competitive rates, raising deductibles, and encouraging employees to utilize preventive care services. These strategies can help lower premiums and overall healthcare expenses for businesses in Tennessee.
In Tennessee, the main difference between PPO and HMO health insurance plans lies in provider flexibility and cost. PPO plans offer more choice in healthcare providers but come with higher out-of-pocket costs, while HMO plans require members to select a primary care physician and obtain referrals for specialist care.
For small businesses in Tennessee, a fully insured small group health insurance plan may be the best option. This type of plan provides predictable costs and coverage for employees, offering financial stability and peace of mind for employers. Consider consulting with a local insurance provider to find the best fit for your business needs.
The main factors driving health insurance costs in Tennessee include the rising costs of healthcare services, an aging population requiring more care, increased chronic conditions, and utilization of expensive medical technologies. These factors contribute to the overall increase in health insurance premiums in the state.
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.
Todd Taylor with Taylor Benefits gives our small business the kind of personal service we need. Insurance benefits are important to our employees and Todd helps us find a balance between benefits and value. Todd responds immediately to my phone calls & e-mails. He has even gotten in touch with me on a Sunday when we were in need of coverage answers immediately. We are very pleased with the hands-on service Todd and his staff provide.”
-Ken and Linda Orvick, Orvick Management Group, Inc.
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