Employer-sponsored health insurance is an important component of total employee compensation since it provides employees with high-quality, low-cost medical care. Employer-sponsored healthcare exists in Montana for approximately 200,000 people, including businesses such as Town Pump and Northwestern.
The ACA (Affordable Care Act) requires employers with more than 50 employees to provide health insurance to their workers. This may be accomplished in a variety of ways. As a result, we've divided large companies (51 or more employees) and small businesses (1-50 employees).
Among Montana small employers, 69% provide access to medical benefits for their employees, and 70% of employees take full advantage of the offering. With 20,000 small employers in Montana representing over 70,000 employees, the employer covers an average of 77% for single employees and 65% for families. From this, the employer pays approximately $445 each month for an individual and $1098 for a family. The employee also has a monthly premium to pay, which costs $132 for a single employee and $588 for a family. The individual family component can cost anywhere from $351 at the 25th percentile to $765 at the 75th percentile.
13% of employees that work for small employers select a high deductible health plan, 29% choose an HMO, and 34% opt for a PPO. These various plan options allow for different levels of coverage, ranging from a narrow network limited to specific PCPs, specialists, and hospitals to an open network that has access to a variety of physicians and hospitals.
Montana small businesses may assist their workers by providing tax-optimizing healthcare plans like Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). 46% of small employers in Montana use an HSA, and 43% use an FSA. Both are fantastic methods to help employees manage their medical expenditures in the most cost-effective manner while keeping business expenses low.
45% of small businesses provide dental benefits, while only 25% offer vision, which is less than big businesses. When they are accessible, 78% utilize dental services, and 82% enroll in vision care. Offering dental and eye care may significantly benefit employers when evaluating their year's benefits choices.
The 6,000 large employers in Montana provide medical coverage to over 203,000 individuals across the state. Larger employers, in general, are able to provide most comprehensive medical coverage for their employees. The percentage of employees at large employers in Montana that take advantage of this benefit is 76%. Large Montana employers cover an average of 79% of the monthly premium for single employees and 73% of the premium for families. This equates to an employer cost of $505 per month for a single person and $1356 for a family. For the employees, this equates to approximately $130 per month for single employees and $497 for families, with costs ranging from $65 each month for a family at the 25th percentile and $181 for a family at the 75th percentile. If you are lucky, 9.0% of large Montana employers cover all medical expenses for single individuals and 4.5% for families.
Plan types can be selected by a variety of criteria, depending on the employee demographics. In Montana, 38% of employees opted to join a PPO plan, 31% joined an HMO, and 22% joined a High Deductible Health Plan. The difference in plan type has an impact on the level of coverage available from physicians and hospitals. It also affects copays, deductibles, and other elements.
Providing employees with methods to manage their medical expenditures tax-advantaged is an important aspect of a well-rounded comprehensive benefits package. How can you do this? Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) are popular options. 65% of large businesses in Montana provide an HSA, and 69% provide an FSA.
Large businesses, on average, have a greater variety of dental and vision plan alternatives when compared to small employers. Dental plans are offered by large Montana employers 69% of the time, with 83% taking advantage of it, and 41% offer vision coverage with 83% utilizing that option.
If you want assistance determining which insurance broker is ideal for your area, contact Mployer Advisor right now. Whether you're a small or large Montana company, selecting an insurance broker is a significant decision.
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