Medical insurance is an important part of a complete compensation package. Providing high-quality, low-cost medical insurance to employees is a crucial element of any total compensation package. Healthcare coverage in Colorado is provided by approximately 2,100,000 people, whether you work for Davita or Agrium U.S.
The Affordable Care Act (ACA) requires that businesses with more than 50 workers in the state of Colorado provide healthcare to their employees. Because this might be achieved in a variety of ways, we've divided it out based on small employers (1-50 people) and large employers (51 or more individuals).
There are about 400,000 small businesses in Colorado with roughly 114,000 workers. Benefit programs range from the most basic to full employer coverage. Medical benefits are provided by 69% of Colorado employers, with 70% utilizing the benefit. For individuals in Colorado, the employer covers 77% and 65% for families on average. This costs a small company $445 monthly for an individual and $1098 per family. The employee is then required to pay a monthly premium that ranges from $445 for single people to $1098 for a family. To put things another way, the individual component of a household might range from $351 at the 25th percentile to $765 at the 75th percentile.
In terms of plan design, for small businesses, 13% pick a high deductible health plan, 29% choose an HMO, and 34% select a PPO. These various plan types provide for varying levels of coverage, from a restricted network that includes only certain PCPs, specialists, and hospitals to an open network with access to a variety of physicians and hospitals.
Colorado small enterprises may assist and manage costs by offering tax-optimizing savings accounts like Health Savings Accounts (HSAs) or healthcare Flexible Spending Accounts (FSAs). In Colorado, 46% of small businesses provide an HSA, while 43% offer an FSA. Both are excellent methods to help employees manage their medical expenses in the most cost-effective way possible for little cost to the employer.
When looking at your comprehensive employee benefits program, dental and vision perks are important considerations. Only 25% of small businesses provide vision care, while 45% provide dental coverage. This is significantly lower than what we observe among major employers. Employees take advantage of dental and vision services when they are available, with 78% utilizing dentistry and 82% utilizing eyesight.
The 1,761,000 individuals covered by the state's 44,000 large employers receive medical insurance. People all around Colorado benefit from this program. In general, larger businesses are capable of giving their workers the most comprehensive medical coverage. The percentage of people employed by big businesses in Colorado who utilize this benefit is 76%. Large Colorado companies pay an average of 79% of a single employee's monthly premium and 73% of a family's premium each month. For a single person, the average cost per month is $505 for an employer. For a family of two adults and one child, the monthly employer cost is about $1356. For employees, this includes an average of $505 per month for individuals and $1356 per month for families, with costs ranging from $65 each month for a family at the 25th percentile to $181 each month for a family at the 75th percentile. If you're lucky, 9% of big Colorado employers cover all medical expenditures for single persons and 4.5% do so for families.
Depending on the characteristics of your staff, you may pick a number of different plan types. In Colorado, 38% of employees opted to join a PPO, 31% selected an HMO, and 22% picked a High Deductible Health Plan when enrolling in PPO plans. The choice of plan type determines the breadth of care provided by doctors and hospitals. It also influences co-payments, deductibles, and other elements.
Providing employees with options to handle their medical expenses on a tax-advantaged basis is an important aspect of a comprehensive benefits package. What can you do? Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) are popular options. 65% of Colorado's major businesses provide an HSA, as well as 69% of employers who offer an FSA.
Large employers, on average, provide more dental and vision insurance options than smaller businesses. Large Colorado employers offer dental plans to their employees 69% of the time, and 83% utilize that choice, while 41% offer vision coverage and 83% use it.
If you need assistance in selecting an excellent insurance broker that specializes in medical benefits in your region, contact Mployer Advisor right now. Whether you're a small or big business in Colorado, picking a broker is a significant decision.
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