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Medical benefits are an important component of a complete compensation package. Providing high-quality, cost-effective medical insurance to employees is a vital part of every total compensation package. There are approximately 3,200,000 individuals insured by healthcare in Massachusetts, whether you work for Raytheon Company or Boston Pediatrics.
Under the Affordable Care Act, if an organization has more than 50 employees, it must provide health insurance to its workers. This may be accomplished in a variety of ways. As a result, we have divided out what medical benefits look like for both small businesses (1-50 workers) and large enterprises (51 or more employees).
Among the 124,000 small employers in Massachusetts representing over 505,400 employees, 68% provide access to medical benefits, while 65% of employees take advantage of the benefit. On average, small employers in Massachusetts cover 75% for single employees and 70% for families, which costs the small employer an average of $483 each month for individuals and $1321 for families. The employee also has to pay a monthly cost which totals out to $160 for a single employee and $561 for a family. A family individual component can range from $366 at the 25th percentile to $721 at the 75th percentile.
When selecting a plan design, 21% of small employer enrollees choose a high deductible health plan, 18% select an HMO, and 38% select a PPO. Having several plan types to pick from allows for coverage choices ranging from a restricted network that includes only certain PCPs, specialists, and hospitals to an open network with access to numerous physicians and hospitals.
Small companies in Massachusetts might help their staff save money and pay bills promptly by providing tax-optimizing arrangements such as Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). Both an HSA and an FSA are fantastic methods for workers to manage their medical expenditures in the most cost-effective way possible while maintaining profitability. 33% of all small businesses in Massachusetts provide an HSA, while 44% provide an FSA.
When evaluating your whole employee benefits package, dental and vision advantages are two of the most important perks. Dental benefits are provided by 40% of small businesses, whereas just 14% provide vision care. This is significantly lower than what we see among large corporations (where dental and vision benefits are available). Employees take advantage of dental services at a rate of 76%, while they utilize eyesight testing at a rate of 78%.
In the state of Massachusetts, 55,000 large employers provide medical coverage to over 2,746,000 individuals, with 71% taking advantage of the benefit. Larger employers, compared to smaller ones, are generally able to provide most comprehensive medical benefits. On average, Massachusetts employers cover 78% of the monthly premium for single employees and 78% of the premium for families. On the employer side, this equates to a monthly premium average of $547 per month for singles and $1630 for families. For employees, this costs an average of $158 per month for single employees and $454 for families, with costs ranging anywhere from $105 each month for a family at the 25th percentile to $193 for a family at the 75th percentile. However, if you’re lucky enough to work with a few select Massachusetts large employers, 5.7% cover all medical expenses for single individuals, and 3.6% cover all expenses for families.
Employee demographics play a role in plan designs. In Massachusetts, 43% of employees participate in PPO plans, 19% in HMO plans, and 35% in High Deductible Health Plans. The plan type influences the breadth of coverage available from physicians and facilities, copayments, and other elements.
When it comes to big businesses in Massachusetts, 53% provide a Health Savings Account (HSA) and 71% provide a Flexible Spending Account (FSA). Both an FSA and an HSA are crucial elements of a tax-advantaged approach to medical spending.
Large businesses have a greater rate of dental and vision plan options than little companies. Large Massachusetts employers provide dental plans to their workers 64% of the time, with 81% taking advantage of that choice, while 31% offer vision coverage and 78% use it.
If you need assistance selecting a top insurance broker that specializes in medical benefits in your region, contact Mployer Advisor immediately. Whether you're a small or big company in Massachusetts, picking a brokerage is a major choice.
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