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Medical benefits are an essential element of a complete compensation package. Providing high-quality, low-cost medical insurance for employees is a crucial aspect of a comprehensive benefits package. There are approximately 1,200,000 people covered by healthcare in Kentucky, whether you work for Kindred Healthcare or Papa John's in Frankfort.
If an employer has over 50 people, the Affordable Care Act (ACA) requires them to offer health insurance. This can be achieved in a variety of ways. As a result, we've divided out what medical benefits look like for both small businesses (1-50 employees) and large corporations (51+).
Among the 42,000 small employers in Kentucky representing over 182,000 employees, 67% provide access to medical benefits, while 67% of employees take advantage of these benefits. On average, if you’re a small employer in Kentucky, the employer covers 77% for single employees and 62% for families, costing the small employer approximately $428 each month for individuals and $996 for families. The employee also has to pay a monthly amount which totals out to an average of $127 for a single employee and $606 for a family. A family individual component can range from $390 at the 25th percentile to $735 at the 75th percentile.
When deciding on a plan design, 17% of small businesses employ high deductible health insurance, 9% an HMO, and 48% a PPO. Having several plan types to pick from allows for coverage decisions ranging from a restricted network that includes only certain PCPs, specialists, and hospitals to an open network with access to a wide range of practitioners and hospitals.
Small employers in Kentucky can assist their staff members in managing expenses and pay appropriately by providing tax-optimizing healthcare options like Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). Both an HSA and an FSA are fantastic ways for employees to save money on medical treatments while still receiving the benefits of tax-free savings accounts. 33% of Kentucky's small businesses offer an HSA, while 39% provide an FSA.
When it comes to evaluating your comprehensive employee benefits package, dental and vision perks are two of the most important components. Dental benefits are available from 26% of small employers, whereas just 17% provide vision. This is significantly lower than what we see among big businesses. Employees who work for small employers take advantage of dental coverage at a rate of 74%, and vision coverage at a rate of 78%.
In the state of Kentucky, 25,000 large employers provide medical coverage to over 1,063,000 individuals, with 74% taking advantage of the benefit. Larger employers, compared to smaller ones, are generally able to provide most comprehensive medical benefits. On average, Kentucky employers cover 79% of the monthly premium for single employees and 70% of the premium for families. On the employer side, this equates to a monthly premium average of $486 per month for singles and $1230 for families. For employees, this costs approximately $125 per month for single employees and $522 for families, with costs ranging anywhere from $76 each month for a family at the 25th percentile and $157 for a family at the 75th percentile. However, if you’re lucky enough to work with a few select Kentucky large employers, 8.2% cover all medical expenses for single individuals, and 1.8% cover all expenses for families.
Depending on employee demographics, plan types may be selected for a variety of reasons. 55% of employees in Kentucky opted to join a PPO plan, 9% joined an HMO, and 29% enrolled in a High Deductible Health Plan when applying for insurance. The difference in plan type determines the level of coverage available across doctors and facilities. It also affects co-insurance fees and other elements.
Providing employees with methods to manage their medical expenditures tax-advantaged is an important aspect of a comprehensive benefits package. What are your options? Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) are popular choices. An HSA is available in Kentucky, with 53% of large employers offering one and 64% providing an FSA.
When it comes to dental and vision plan options, bigger businesses generally have a higher option rate than smaller ones. In Kentucky, 50% of large employers provide dental insurance while 79% use the benefit, whereas 34% offer vision coverage and 78% take advantage of the benefit.
Whether you're a small or big business in Kentucky, choosing the right benefits designer is crucial. If you want a list of businesses in your area that specialize in medical plans, contact Mployer Advisor now.
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