Health insurance is the single most popular employee benefit, and it’s easy to understand why. Health insurance benefits mean employees don’t have to pay expensive premiums out-of-pocket to cover themselves and their families. So small business health insurance is great for employees, but what about your business?
In fact, small business health insurance benefits can be great for your company, too.
That’s not to say health insurance is all upside for employers. It’s expensive, and, as a small business owner or HR manager, you have to figure out which health insurance packages to offer and how much they cost. Finding answers isn’t as easy as it should be.
This article aims to answer some of the most pressing questions about small business health insurance, including the big one: How much does it cost?
Small business health insurance costs depend on many factors, so it’s impossible to say exactly how much your business will pay. But we can work out a ballpark figure by averaging what companies across the U.S. pay for employee premiums.
Here are the headline average figures:
These are small business health insurance premiums averaged across two dozen industries. However, some industries pay more than others. For example, small business health insurance costs in the retail industry are significantly lower than in the utility industry. In retail, annual premiums are around $5,087 for single coverage and $11,371 for family coverage. In the utility industry, it’s approximately $6,981 for single coverage and $18,579 for families.
We’ve focused on small business health insurance premiums, but there may be additional costs to consider. These include the time and resources you’ll need to manage employee insurance benefits. You can expect to spend time researching insurance plans initially and during renewal, monitoring regulatory changes and communicating with insurance brokers or providers.
Small business health insurance premiums are based on risk. Because every company is unique, it has a unique risk profile that insurance providers take into account when calculating premiums. Here are some of the factors that can affect the cost of health insurance for small businesses.
The health insurance market is as overwhelming as it is complex, and there are many variables to consider when choosing a health insurance plan that meets the needs of your small business. Small businesses with limited budgets must weigh the benefits to their company and its employees, as well the potential costs. Of course, a sustainable benefits package relies on finding a health insurance plan that works for everyone, too. Read more here to see if your small business needs insurance.
Luckily, a top-rated health insurance broker with small business expertise can help. A reliable insurance broker should have the dexterity to guide a small business through the health insurance market and the knowledge to educate them about the issues that impact small businesses. Once found, a qualified insurance broker will work with you to find the best small business health insurance package at the best price. To learn more about how brokers get the best rates, click here.
To measure how your company's benefits compare across healthcare and all other major components, download your free custom benchmark report from Mployer Advisor here.
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