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Medical insurance is a crucial aspect of any total remuneration package. Medical benefits, in particular, are an important part of a full compensation package. There are roughly 3.5 million individuals covered by healthcare in Michigan, whether you work for Trinity Health or Spectrum Health.
The Affordable Care Act (ACA) states that if you have more than 50 workers in the state of Michigan, you must provide health insurance to them. We've broken down what medical benefits look like regardless of your company's size, whether you're a small employer (1-50 people) or a big employer (51+).
Among Michigan small employers, 68% provide access to medical benefits for their employees, and 67% of employees take full advantage of the offering. With 137,900 small employers in Michigan representing over 580,000 employees, the employer covers an average of 77% for single employees and 70% for families. From this, the employer pays approximately $448 each month for an individual and $1210 for a family. The employee also has a monthly premium to pay, which costs $133 for a single employee and $514 for a family. The individual family component can cost $321 at the 25th percentile to $734 at the 75th percentile.
A high deductible health plan, an HMO, and a PPO are the most popular choices for small employers, with 27% choosing a high deductible health plan, 7% selecting an HMO, and 39% opting for a PPO. Having several options to pick from allows you to choose from several network designs that include access to a select group of PCPs, specialists, and hospitals or an open network with many providers.
Michigan small businesses can assist and manage costs by providing tax-optimizing solutions such as Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). Both are fantastic strategies to help employees manage their medical expenditures in the most cost-effective way possible. According to a survey done by Credit Karma, 40% of Michigan small companies offer an HSA, while 44% provide an FSA. Both are excellent tools for keeping track of your spending and helping you save money on healthcare.
44% of small employers provide dental benefits, while just 29% offer vision, which is lower than larger companies. When they are offered, 78% of respondents use dental services, and 79% opt for vision programs. When evaluating their year's benefits options, employers might find that offering dental and vision is a valuable option.
Amongst 67,000 large employers in the state of Michigan, medical coverage is provided to over 2,975,000 individuals. However, the monthly premium they cover varies. For individuals, large Michigan employers cover 79% of the monthly premium while also paying 78% of the premium for families. Larger employers are generally able to provide many comprehensive medical benefits, which is understandable, and 74% 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 $509 per month for single employees and $1493 for families to be paid for by the employer. On the employee side, this will cost them an average of $131 per month for individuals and $416 for families, with costs ranging anywhere from $83 each month for a family at the 25th percentile to $161 for a family at the 75th percentile. However, if you work for a few select Michigan large employers, 8.2% cover all medical expenses for single individuals, and 5.4% cover all expenses for families.
Plan types may be chosen by a variety of criteria depending on the employee demographics. 44% of employees in Michigan opted to join PPO plans, 7% chose HMOs, and 46% picked High Deductible Health Plans. The difference in plan type determines the level of coverage available from doctors and hospitals. It also affects copays, deductibles, and other features.
The majority of large employers in Michigan (59%) offer a Health Savings Account (HSA), and 69% utilize it. Both an FSA and an HSA are crucial features to include when assisting employees with their medical expenses from a tax-advantaged standpoint.
Large businesses generally have a greater variety of dental and vision benefit plans when compared to small companies. Large Michigan employers provide dental insurance to their staff 68% of the time, with 83% taking advantage of that opportunity, and 45% offer vision care, with 79% utilizing it.
If you're a small or big business in Michigan, selecting a broker to create health benefits for your plan type is crucial. Contact Mployer Advisor right now if you need a list of businesses in your region that specialize in medical plans.
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