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Medical insurance is an important element of a whole compensation package, and it must be high-quality and low-cost. There are approximately 14 million people covered by healthcare in California, whether you work for Kaiser Foundation Health Plan or Ross Stores.
The Affordable Care Act, as long as you have over 50 people on staff in the state of California, requires that you provide healthcare to your employees. We've categorized medical benefits regardless of company size for you, whether you're a small employer (1-50 workers) or a large business (51+).
70% of California's small companies, which employ roughly 677,000 people and have over 2.6 million employees, provide medical benefits to their workers, and 68% of those employed take advantage of the benefit. If you are a small employer in California, the employer pays 79% for single workers and 67% for families on average each month, costing the employer $458 per person and $1205 per family. The employee also has to cover a monthly cost that totals out to $458 for an individual and $1205 for a family on average. Individual components of a family may vary from $365 at the 25th percentile to $826 at the 75th percentile.
Small businesses may use a variety of strategies to create their insurance plans. 13% of employees select high deductible health plans, 29% pick an HMO, and 34% go with a PPO. Different plan types to choose from allowing for a variety of coverage options. This can be found in the form of a restrictive network that includes only certain PCPs, specialists, and hospitals or an open network with access to many doctors and hospitals.
In California, 39% of employers provide a Health Savings Account (HSA) and 42% a healthcare Flexible Spending Account (FSA). This is an excellent method for employees to manage their medical expenditures while saving the company money.
Small employers, on the other hand, offer dental insurance 52% of the time and vision coverage just 42% of the time, which is lower than big businesses. 80% of those who are eligible take advantage of dental benefits and 84% enroll in vision programs when they are available. When considering their benefits alternatives for the year, employers may find that offering dental and vision is a smart option.
In California, over 11 million people have health insurance through 256,000 large employers, with 75% of them taking advantage of the perk. Larger companies are generally able to provide more comprehensive medical benefits than smaller ones. On average, single employees in California receive coverage for 81% of the monthly fee and families for 75%. On the employer side, the average monthly premium for singles is $520, and for families, it's $1488. For individuals, the cost averages out to be $520 per month and $1488 per month for families. Costs range from $80 each month for a family at the 25th percentile to $164 per month for a family at the 75th percentile. However, if you work with a few select California major employers, 13.4% of all medical costs are covered by individuals, and 5.4% of all expenses are covered by families.
Plan types can be chosen by a variety of criteria according to employee demographics. In California, 38% of employees chose PPO plans, 31% picked an HMO, and 22% selected a High Deductible Health Plan when enrolling in PPO plans. The plan type has an impact on the scope of coverage provided by doctors and hospitals. It also affects co-pays, deductible amounts, and other aspects.
Managing your medical expenditures at a tax-advantaged level is an important element of a well-rounded comprehensive benefits program. What are your options? Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) are popular methods for doing so. 58% of leading organizations in California offer an HSA, while 68% provide an FSA to their workers.
Larger employers have a higher offering rate than smaller businesses when it comes to dental and vision plans. In California, 76% of large companies provide dental coverage, while 85% use it. 58% offer vision insurance and 85% take advantage of the benefit.
If you're considering medical benefits, contact Mployer Advisor immediately to obtain assistance selecting a top insurance broker that specializes in medical coverage in your area. Whether you're a small or big company in California, choosing an insurance broker is a significant decision.
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