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Healthcare coverage for workers is a vital component of overall employee compensation. According to the state's Department of Labor and Workforce Development, employer-sponsored healthcare insurance is available to roughly 2,600,000 individuals in Tennessee's top sectors, whether you work for Dollar General or Bridgestone Americas.
If you have more than 50 employees in Tennessee, the Affordable Care Act (ACA) requires that you provide health insurance to your staff. Because this may be accomplished in a variety of ways, we've divided it out for both small businesses (1-50 workers) and large employers (51+).
There are 82,000 small employers across Tennessee representing over 364,700 employees. Benefit plans range from the bare minimum to comprehensive employer coverage. 67% of Tennessee employers provide access to medical benefits, with 67% taking advantage of the benefit. For small employers in Tennessee, the employer covers an average of 77% for single employees and 62% for families. This costs the small employer approximately $428 each month for an individual and $996 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 $606 for a family. To understand the ranges, a family's individual component can range from $390 at the 25th percentile to $735 at the 75th percentile.
When it comes to plan design, 17% of employees that work for small employers select a high deductible health plan, 9% choose an HMO, and 48% pick a PPO. Having several plan varieties to pick from gives consumers the opportunity to choose from a limited network that includes only certain PCPs, specialists, and hospitals or an open network with access to many physicians and hospitals.
Small Tennessee enterprises can assist and manage expenses by providing tax-optimizing plans like Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). 33% of Tennessee employers offer an HSA, while 39% offer an FSA. Both are excellent methods to help employees manage their medical costs in the most cost-effective way possible for little cost to the employer.
Dental and vision perks should factor into your decision when considering your complete employee benefits package. 26% of small businesses provide dental benefits, while only 17% offer vision. This is far lower than what we see among big businesses. 74% of employees take advantage of dental benefits when offered, compared to the 78% of employees that utilize vision care benefits.
The 55,000 large employers in Tennessee provide medical coverage to over 2,239,000 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 Tennessee that take advantage of this benefit is 74%. Large Tennessee employers cover an average of 79% of the monthly premium for single employees and 70% of the premium for families. This equates to an employer cost of $486 per month for a single person and $1230 for a family. For the employees, this equates to an average cost of $125 per month for single employees and $522 for families, with costs ranging from $76 each month for a family at the 25th percentile to $157 for a family at the 75th percentile. If you are lucky, 8.2% of large Tennessee employers cover all medical expenses for single individuals and 1.8% for families.
Plan designs may differ depending on employee demographics. Among large Tennessee businesses, 55% enroll in PPO plans, 9% in HMOs, and 29% in High Deductible Health Plans. The plan type determines the range of coverage provided by doctors and facilities, as well as cost factors such as copays and deductibles.
When it comes to big employers in Tennessee, 53% have a Health Savings Account (HSA) and 64% have a Flexible Spending Account (FSA). Both an FSA and an HSA are crucial elements in assisting employees with managing their medical costs from a tax-advantaged standpoint.
Large employers generally have a greater number of dental and vision plan options compared to small businesses. Large Tennessee businesses provide dental coverage to their workers 50% of the time, with 79% taking advantage of it, and 34% offer vision care, with 78% taking advantage of that option.
Choosing a benefits consultant to create your health benefits plan is crucial, whether you're a small or large business in Tennessee. If you want a list of companies in your region specializing in medical insurance, contact Mployer Advisor right now.
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