Medical insurance is a necessary component of a complete compensation package. Providing high-quality, low-cost medical benefits to staff is an important element of any compensation program. There are approximately 1,500,000 people covered by healthcare in Louisiana, whether you work for Amedisys or Johnson's Alligator Tours.
The Affordable Care Act (ACA) requires employers with more than 50 employees to provide health insurance to their employees. This may be accomplished in a number of ways. As a result, we've divided out the medical benefits available to both small businesses (1-50 workers) and big businesses (51 or more).
There are 64,000 small employers across Louisiana, representing over 280,200 employees. Benefit plans range from the bare minimum to comprehensive employer coverage. 68% of Louisiana employers provide access to medical benefits, with 64% taking advantage of the benefit. For small employers in Louisiana, the employer coveras an average of 76% for single employees and 59% for families. This costs the small employer approximately $420 each month for an individual and $994 for a family. The employee then has to pay a monthly amount as well, which comes out to be $132 for single employees and $685 for families. To understand the ranges, a family's individual component can range from $423 at the 25th percentile to $983 at the 75th percentile.
17% of employees working for small employers choose a high deductible health plan, 9% pick an HMO, and 48% select a PPO. These various plan types provide different levels of coverage depending on the network offered.
Small employers in Louisiana may benefit their staff by providing tax-optimizing plans like Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). Both an HSA and an FSA are excellent methods to help workers manage their medical costs in the most cost-effective manner possible while also saving money for the employer. There are 39% of Louisiana's small businesses that offer an HSA and 40% that provide a cafeteria plan.
31% of small employers provide dental benefits, whereas just 20% do so for vision, which is far lower than what big corporations offer. This is a significant sought-after benefit since 75% utilize dental care and 72% use vision care. As a result, both dental and vision are important offerings for employers when choosing their comprehensive insurance package.
Amongst 35,000 large employers in the state of Louisiana, medical coverage is provided to over 1,291,000 individuals. However, the monthly premium they cover varies. For individuals, large Louisiana employers cover 78% of the monthly premium while also paying 67% of the premium for families. Larger employers are generally able to provide many comprehensive medical benefits, which is understandable, and 70% of individuals take advantage of this benefit when offered. With a large percentage of the monthly premium covered by the employer, this equates to an average of $476 per month for single employees and $1227 for families paid for by the employer. On the employee side, this will cost an average of $130 per month for individuals and $598 for families, with costs ranging anywhere from $86 each month for a family at the 25th percentile to $179 for a family at the 75th percentile. However, if you work for a few select Louisiana large employers, 11.4% cover all medical expenses for single individuals, and 1.8% cover all expenses for families.
Plan types differ depending on employee demographics. For large Louisiana businesses, 55% enroll in PPO plans, 9% in HMO plans, and 29% in High Deductible Health Plans. The plan type influences the scope of coverage provided by doctors and hospitals as well as copays, deductibles, and other elements.
Providing employees with methods to handle their medical expenditures tax-advantaged is an important aspect of a well-rounded whole benefits package. What are your options? Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) are popular options. An HSA is a health savings plan that allows you to contribute money on an after-tax basis to pay for qualified medical expenses. In Louisiana, 58% of large businesses provide an HSA, while 65% offer a Flexible Spending Account to their workers.
Large businesses, on average, have a greater number of dental and vision plan options than small businesses. In Louisiana, large employers provide dental plans to their workers 54% of the time, and 80% take advantage of that option, while 37% offer vision plans and 72% take advantage of that opportunity.
When it comes to choosing a benefit provider for your plan type, you should prioritize this decision, whether you're a small or large employer in Louisiana. If you want a list of businesses in your area that specialize in medical benefits, contact Mployer Advisor now.
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