Medical insurance is an important element of a complete compensation package because it contributes to the provision of high-quality, cost-effective medical care for employees. There are about 500,000 people covered by healthcare in Hawaii, whether you work for Hawaii Pacific Health or Altres Global Business Services.
The Affordable Care Act (ACA) states that you must provide health insurance to your employees in Hawaii if you have more than 50 workers. We've broken down what medical benefits look like regardless of company size, whether you're a small employer (1-50 people) or a big business (51+).
According to the Department of Business, Economics, and Technology (DBERT), 70% of Hawaii's 21,000 small businesses with 80,000 employees provide medical insurance, while 68% of employees use the benefit. Suppose you're an average small business in Hawaii. In that case, your employer covers 79% for single workers and 67% for families, costing you an average of $458 per month for individuals and $1205 per month for families. The employer also demands a monthly payment, which averages out to $458 for a single and $1205 for a family. Individual component expenses can range from $365 at the 25th percentile to $826 at the 75th percentile.
Small companies may employ a variety of approaches to build plans. High-deductible health plans are chosen by 13% of employees, 29% pick an HMO, and 34% select a PPO. Having various plans to select from allows for a variation in levels of coverage. This can be found in a restricted network that contains just certain PCPs, specialists, and hospitals or an open network that provides access to numerous physicians and hospitals.
By adopting tax optimizing strategies such as Health Savings Accounts (HSAs) or healthcare Flexible Spending Accounts (FSAs), small companies may assist their workers in managing expenses and paying appropriately. Both an HSA and an FSA are excellent methods for employees to manage medical costs while saving money for the company. An HSA and an FSA are offered by 39% of Hawaii's small businesses, with 42% offering both types.
52% of small employers provide dental coverage, whereas only 42% offer vision coverage, which is far lower than that of most larger businesses. This is an essential desired benefit since 80% utilize dental care and 84% utilize vision care. Dental and vision are therefore important services for employers when selecting their comprehensive insurance package.
In Hawaii, 11,000 big businesses offer medical insurance to over 425,000 people, with 75% of those people taking advantage of the benefit. Larger employers are typically able to provide more comprehensive medical benefits than smaller ones. Hawaii companies cover 81% of single employees' monthly premiums and 75% of family premiums on average. On the employer side, this equals a monthly premium of $520 for singles and $1488 for families. For individuals, the average cost is $520 per month for single workers and $1488 per month for families, with costs ranging from $80 each month for a household at the 25th percentile to $164 each month for a family at the 75th percentile. However, if you happen to work with a few Hawaii large businesses, 13.4% of employer insurance plans will cover all medical expenses for individuals, and 5.4% of employer insurance plans will cover all family expenses.
Depending on the demographic of your staff, different factors may influence which plans are selected. In Hawaii, 38% of employees opted to join a PPO plan, 31% enrolled in an HMO, and 22% opted for a High Deductible Health Plan. The variety of coverage provided by the plan type determines how many doctors and hospitals are covered. It also influences copays, deductibles, and other elements.
It's critical for businesses to provide employees with alternate options for managing tax-advantaged medical expenditures. The Flexible Spending Account (FSA) and the Health Savings Account (HSA) are two of the most popular methods. Hawaii employers offer HSA plans to 58% of their workers, while FSA programs are accessible to 68% of them.
Large employers, on average, provide more dental and vision insurance choices to their workers than small businesses. Large Hawaii employers offer dental plans to their employees 76% of the time, and 85% utilize it, while 58% provide vision care and 85% take advantage of that option.
If you want assistance selecting the ideal medical insurance broker in your region, please contact Mployer Advisor right now. Whether you're a small or large business in Hawaii, selecting a broker is a significant decision.
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