Medical benefits are an important element of a complete compensation package. Providing high-quality, low-cost medical insurance for employees is a crucial component of a whole compensation package. There are approximately 200,000 individuals covered by healthcare in South Dakota, whether you work for Regional Health or Sanford Health.
The Affordable Care Act (ACA) directs employers with more than 50 people to provide medical coverage to their workers, which can be done in a variety of ways. As a result, we've divided up what comprehensive health insurance covers for both small employers (1-50 employees) and large businesses (51+ employees).
Among the 14,000 small employers in South Dakota representing over 57,500 employees, 68% provide access to medical benefits, while 63% of employees take advantage of the benefit. On average, if you’re a small employer in South Dakota, the employer covers 78% for single employees and 67% for families, which costs the small employer approximately $454 each month for individuals and $1182 for families. The employee also has to pay a monthly amount which totals out to $127 for a single employee and $580 for a family on average. A family individual component can range from $349 at the 25th percentile to $684 at the 75th percentile.
When selecting a plan, small businesses select a high deductible health plan 27% of the time, an HMO plan 7% of the time, and a PPO plan 39% of the time. Having various plan types to choose from provides coverage choices that range from a restricted network limited to specific PCPs, specialists and hospitals to an open network with access to a variety of physicians and hospitals.
In South Dakota, 42% of businesses provide a Health Savings Account (HSA) to employees, and 42% provide a healthcare Flexible Spending Account (FSA) to help them manage their costs and pay effectively. With either option, employers can assist staff in the most cost-effective way possible while still saving money.
44% of small businesses provide dental benefits, whereas only 21% offer vision, which is less than large employers. When they are given the option, about 76% of respondents take advantage of dental care and 79% utilize eye care benefits. Employers may use dental and vision as distinguishing benefit when evaluating their options for the year.
Amongst 6,000 large employers in the state of South Dakota, medical coverage is provided to over 239,000 individuals. However, the monthly premium they cover varies. For individuals, large South Dakota employers cover 80% of the monthly premium while also paying 75% of the premium for families. Larger employers are generally able to provide many 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 to $145 for a family at the 75th percentile. However, if you work for a few select South Dakota 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. Looking at the entire state of South Dakota, 44% of employees are enrolled in PPO plans, 7% in HMO plans, and 46% in High Deductible Health Plans. The plan type influences the scope of coverage provided by physicians and hospitals as well as copays, deductibles, and other aspects.
It's critical for businesses to allow staff members to manage their health-related expenditures from a tax advantage standpoint. The Flexible Spending Account (FSA) and Health Savings Account (HSA) are two of the most popular options. An HSA is available at 61% of big South Dakota employers, while an FSA is accessible at 70%.
Large employers generally have a higher rate of dental and vision plan offerings when compared to small employers. Large South Dakota employers offer dental plans to their employees 68% of the time, with 81% utilizing that option. 38% offer vision coverage, with 79% taking advantage of that option.
If you're looking for a South Dakota medical benefits insurance broker, Mployer Advisor can help you choose the best one. Whether you're a small or large employer in South Dakota, selecting an insurance broker is a critical choice.