Medical benefits are an important aspect of a complete compensation package and must be provided at a reasonable cost. In Arkansas, about 800,000 people are covered by healthcare, whether you work for Tyson Foods or The Hillshire Brands Company.
The Affordable Care Act (ACA) says that if you have more than 50 workers in the state of Arkansas, you must provide health insurance to your staff. Because this can be achieved in a variety of ways, we've divided it into two categories: small businesses (1-50 employees) and large businesses (51+).
There are about 36,000 small businesses in Arkansas with around 140,000 employees. Benefit plans range from the absolute minimum to comprehensive employer coverage. With 64% taking advantage of the benefit, 68% of Arkansas employers provide medical benefits to their staff. The average employer in Arkansas covers 76% for single workers and 59% for families (families). On average, a small business with one employee spends $420 monthly for an individual and $994 monthly for a family. The worker is then responsible for a monthly charge that costs around $420 on average, or $994 for a family. To have an idea of the parameters, consider a family's component, which can range from $423 at the 25th percentile to $983 at the 75th percentile.
When it comes to plan design, 17% of small businesses' employees choose a high deductible health policy, 9% pick an HMO, and 48% opt for a PPO. When choosing a plan design, having several different plan types to pick from allows for coverage choices ranging from a restricted network with access to only certain PCPs, specialists, and hospitals to an open network that includes access to numerous physicians and hospitals.
Arkansas small businesses can assist their employees in managing expenditures and paying appropriately by promoting tax-optimizing plans like Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). Both an HSA and an FSA are excellent methods for employees to manage their medical expenses while saving the company money. 39% of Arkansas's small employers provide an HSA, while 40% provide an FSA.
Dental coverage is more common among small businesses, with 31% providing it and 20% offering vision, which is considerably less than big companies. Dental and eye care are two highly desired benefits, with 75% taking advantage of dental services and 72% taking advantage of vision services. As a result, both dental and eye care are important components of employers' comprehensive benefit plans.
Over 733,000 individuals in Arkansas benefit from a medical insurance program provided by 19,000 major employers. In general, larger employers are able to provide most comprehensive medical care to their staff. Arkansas's percentage of employees at large enterprises that take advantage of this perk is 70%. Arkansas's largest businesses cover on average 78% of the single employee's monthly premium and 67% of the family premium. The monthly cost for a single individual is $476, and for a family, it's $1227. For employees, this translates to an average of $476 per month for individuals and $1227 per month for families, with costs ranging from $86 each month for a family at the 25th percentile to $179 per month for a family at the 75th percentile. If you're fortunate, 11.4% of large Arkansas businesses cover all medical expenses for single people and 1.8% cover families.
Depending on variables like age, gender, and job type, employees may select from a variety of alternatives. 55% of workers in Arkansas enrolled in PPO plans, 9% chose to join an HMO, and 29% opted for a High Deductible Health Plan. The difference in plan type has an effect on the amount of insurance coverage available at different medical providers. It also influences co-payments and deductibles.
Providing employees with methods to manage their medical expenditures from a tax-advantaged standpoint is an important aspect of a comprehensive benefits package. How can you do this? Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) are popular options. An HSA is a type of regulated retirement account in which you deposit money into your employer's health plan to pay for qualified medical expenses. Companies in Arkansas offer 58% of large employers with an HSA, while 65% provide employees with access to an FSA.
Larger organizations have a higher offering rate than smaller ones when it comes to dental and vision plans. In Arkansas, 54% of major employers provide dental coverage, while 80% utilize the benefit, whereas 37% offer vision coverage and 72% use the benefit.
If you want assistance selecting an insurance broker that specializes in medical benefits in your area, contact Mployer Advisor right away. Whether you're a small or big business in Arkansas, choosing a broker is a significant decision.
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