Medical benefits are essential for a well-rounded employee compensation package. There are around 2.4 million people insured in Minnesota, whether you work for companies like Best Buy or Cargill.
If you operate with 50 or more employees in the state of Minnesota, you must provide health insurance to your staff under the Affordable Care Act (ACA). Because this may be achieved in a variety of ways, we've separated out what's required for both small employers (1-50 workers) and large businesses (51 or more people).
There are 92,000 small employers across Minnesota, representing over 352,500 employees. Benefit plans range from the bare minimum to comprehensive employer coverage. 68% of Minnesota employers provide access to medical benefits, with 63% taking advantage of the benefit. For small employers in Minnesota, the employer covers an average of 78% for single employees and 67% for families. This costs the small employer approximately $454 each month for an individual and $1182 for a family. The employee then has to pay a monthly amount as well, which comes out to be $127 for a single employee and $580 for a family. To understand the ranges, a family's individual component can range from $349 at the 25th percentile to $684 at the 75th percentile.
When choosing a health plan for small businesses, 27% pick a high deductible health plan, 7% an HMO, and 39% a PPO. Having numerous plan types to select from allows for coverage decisions ranging from a restricted network limited to specific PCPs, specialists, and hospitals to an open network with access to several doctors and hospitals.
Small companies in Minnesota can assist their workers in managing their expenses and paying economically by providing tax-optimizing health savings accounts (HSAs) and healthcare flexible spending accounts (FSAs). Both an HSA and an FSA are excellent methods for employees to manage their medical bills while saving the employer money. There are 42% of all Minnesota businesses that offer an HSA, as well as 42% that provide a flexible spending account.
44% of small companies provide dental coverage, while only 21% offer vision, which is lower than big employers. When given the opportunity, 76% of individuals enroll in dentistry and 79% in vision. Employers may find that offering both dental and vision benefits to employees is a compelling option when considering their year-end benefits options.
Amongst 45,000 large employers in the state of Minnesota, medical coverage is provided to over 2,117,000 individuals. However, the monthly premium they cover varies. For individuals, large Minnesota employers cover 80% of the monthly premium while also paying 75% of the premium for families. Larger employers are generally able to provide most comprehensive medical benefits, which is understandable, and 69% 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 $515 per month for single employees and $1459 for families paid for by the employer. On the employee side, this will cost them an average of $125 per month for individuals and $483 for families, with costs ranging anywhere from $73 each month for a family at the 25th percentile and $145 for a family at the 75th percentile. However, if you work for a few select Minnesota large employers, 9.0% cover all medical expenses for single individuals, and 4.5% cover all expenses for families.
Employee demographics can affect the creation of plans. In Minnesota, 44% of workers are enrolled in PPO plans, 7% in HMOs, and 46% in High Deductible Health Plans. The type of plan influences the range of coverage available from physicians and hospitals as well as cost factors such as copays and deductibles.
It's critical for businesses to make it easy for their employees to manage their medical expenditures in a tax-advantaged manner. Two of the most popular methods are as a Flexible Spending Account (FSA) and a Health Savings Account (HSA). 61% of big Minnesota companies have an HSA, while 70% provide employees with an FSA.
Large employers have a greater variety of dental and vision plans available to their staff in comparison to smaller employers. In Minnesota, large businesses provide dental coverage to their employees 68% of the time, with 81% taking advantage of that option, and 38% offer vision coverage with 79% taking advantage of it.
Choosing a benefits broker for your plan type is a crucial choice, whether you're a small or big business in Minnesota. Mployer Advisor can provide you with a list of businesses in your area that specialize in medical insurance.
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