Medical benefits for workers are an important part of a comprehensive compensation package. Healthcare coverage is available to roughly 1,100,000 individuals in the state of Iowa, whether you work for companies like Casey's General Stores or Hearthside Food Solutions.
The Affordable Care Act (ACA) requires employers that have more than 50 workers in Iowa to provide health insurance. Because this may be achieved in a variety of ways, we've broken it down for both small businesses (1-50 employees) and big businesses (51 or more employees).
There are 41,000 small businesses in Iowa with a combined 170,000 employees. Benefit plans range from the absolute minimum to comprehensive employer coverage. The percentage of Iowa employers that provide medical benefits is 68%, with 63% taking advantage of the opportunity. For small businesses in Iowa, the employer pays an average of 78% for single workers and 67% for families. The average cost of an individual's premium is $454 per month. A family's overall cost is about $1182 each month when you include the employer's share. The employee then has to pay a monthly sum in addition, which averages out to around $454 for individuals and $1182 for families. To get an idea of the ranges, consider a family's individual component, which may range from $349 at the 25th percentile to $684 at the 75th percentile.
From a plan design standpoint, for small businesses, 27% of workers select a high deductible health plan, 7% pick an HMO, and 39% choose a PPO. These several plan kinds enable various ranges of coverage, ranging from a restricted network with limited access to PCPs, specialists, and hospitals to an open network that gives you access to a variety of doctors and hospitals.
In Iowa, 42% of businesses provide a Health Savings Account (HSA) and a healthcare Flexible Spending Account (FSA) to assist employees in managing their costs and pay according to their budget. With little cost to the employer, either choice is an excellent method for employees to maximize medical expenses in the most effective way possible.
When evaluating your total employee benefits package, dental and vision advantages are critical components. Dental coverage is accessible by 44% of small businesses, while only 21% of small employers provide eye care. This is far lower than what we observe among major employers. Employees participate in dental or vision plans at a rate of 76% and 79%, respectively.
Over 972,000 individuals in Iowa have medical coverage through the state's 23,000 large employers. Larger employers, in particular, are able to provide most comprehensive medical coverage to their employees. For single workers, the proportion of people working for big businesses in Iowa who utilize this benefit is 69%. Large companies in Iowa cover on average 80% of the monthly fee for single employees and 75% of the family premium. The average monthly cost for a single person is $515, while that of a family is $1459. For employees, this translates to a monthly cost of around $515 for individuals and $1459 for families, ranging from $73 per month for a family at the 25th percentile to $145 each month for a family at the 75th percentile. 9.0% of Iowa's major employers provide complete medical coverage for single workers, and 4.5% provide complete coverage for families.
Employee demographics can affect your plan designs. The proportion of employees who enroll in PPO plans is 44%, HMO plans is 7%, and 46% for High Deductible Health Plans. The plan type determines the range of coverage available with each healthcare provider and facility, as well as copays, deductibles, and other aspects.
When it comes to big businesses in Iowa, 61% provide a Health Savings Account (HSA) and 70% provide a Flexible Spending Account (FSA). Both an FSA and an HSA are essential elements of tax-advantaged medical expense management for employees.
Larger employers offer a higher offering rate than smaller businesses when it comes to dental and vision plans. In Iowa, 68% of large employers provide dental coverage, while 81% take advantage of the benefit, and 38% offer vision insurance while 79% utilize the benefit.
When it comes to medical benefits, choosing a broker to design a package for your plan type is a critical decision, whether you're a small or big business in Iowa. If you would like a list of brokers in your area that specialize in medical benefits, contact Mployer Advisor immediately.
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