Employer-sponsored healthcare is an essential element of full employee compensation. Employer-sponsored health insurance covers approximately 600,000 individuals in New Mexico, including people working in a variety of industries ranging from Triad National Security to Presbyterian Health Plan.
If you have over 50 workers in the state of New Mexico, the ACA (Unaffordable Care Act) requires you to provide healthcare to your staff. Since this may be accomplished in a variety of ways, we've split it out for both small employers (1-50 employees) and large enterprises (51+).
There are 27,000 small employers across New Mexico, representing over 116,900 employees. Benefit plans range from the bare minimum to comprehensive employer coverage. 69% of New Mexico employers provide access to medical benefits, with 70% taking advantage of the benefit. For small employers in New Mexico, the employer covers an average of 77% for single employees and 65% for families. This costs the small employer approximately $445 each month for an individual and $1098 for a family. The employee then has to pay a monthly amount as well, which comes out to be $132 for an individual and $588 for a family. To understand the ranges, a family's individual component can range from $351 at the 25th percentile to $765 at the 75th percentile.
Small company owners may choose from a variety of design options for their offices. 13% pick HDHP plans, 29% select an HMO, and 34% opt for a PPO. Having several plan sorts to pick from allows for a range of coverage possibilities. This can be achieved by offering a limited network with restricted access to certain PCPs, specialists, and hospitals or an open network that includes access to many doctors and hospitals.
Small businesses in New Mexico can assist their workers by providing tax-optimizing plans like Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs) to help manage expenses while still paying appropriately. An HSA is available from 46% of small employers in New Mexico, whereas an FSA is accessible from 43%. Both are fantastic methods for employers to assist employees in saving money on medical expenditures by helping them handle their costs as efficiently as possible.
Dental coverage is accessible by 45% of small businesses, but just 25% provide vision benefits, which is significantly lower than large corporations. This is a highly coveted benefit, with 78% utilizing dental care and 82% utilizing vision care. As a result, both dental and eye care are important offerings for employers when they're designing their comprehensive insurance plans.
Amongst 14,000 large employers in the state of New Mexico, medical coverage is provided to over 475,000 individuals. However, the monthly premium they cover varies. For individuals, large New Mexico employers cover 79% of the monthly premium while also paying 73% of the premium for families. Larger employers are generally able to provide the most comprehensive medical benefits, which is understandable, and 76% 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 $505 per month for single employees and $1356 for families paid for by the employer. On the employee side, this will cost an average of $130 per month for individuals and $497 for families, with costs ranging anywhere from $65 each month for a family at the 25th percentile and $181 for a family at the 75th percentile. However, if you work for a few select New Mexico large employers, 9.0% cover all medical expenses for single individuals, and 4.5% cover all expenses for families.
Employee demographics can impact plan designs. In New Mexico, 38% of employees enroll in PPO plans, 31% in HMO plans, and 22% in High Deductible Health Plans. The plan type influences the range of coverage available from physicians and facilities, as well as copays, deductibles, and other features.
It is critical for employers to offer their employees tax-advantaged methods to manage medical expenditures. Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are two of the most popular options. Employers in New Mexico offer an HSA to 65% of businesses, and 69% offer an FSA.
In general, larger businesses have a greater variety of dental and vision plans than small businesses. Large New Mexico employers offer dental coverage to staff 69% of the time, with 83% of those who use it. 41% provide vision coverage, and 83% take advantage of that choice.
Whether you're a small or larger business in New Mexico, choosing a benefit designer to construct your plan's benefits is a crucial decision. If you want a list of employers in your region that specialize in medical coverage, contact Mployer Advisor now.
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