Medical insurance is an important element of a complete compensation package. Providing high-quality, low-cost medical benefits for employees is a major component of a whole compensation package. Healthcare coverage is offered to approximately 9,800,000 individuals in Texas, whether you work for Insperity Holdings or Dell.
The ACA (Affordable Care Act) requires businesses with more than 50 workers to provide healthcare to their employees. This may be done in a variety of ways. As a result, we have split the medical benefits available to both small and large employers into five categories (1-50 employees, 51+ employees).
Among Texas small employers, 68% provide access to medical benefits for their employees, and 64% of employees take full advantage of the offering. With 365,200 small employers in Texas representing over 1,490,000 employees, the employer covers an average of 76% for single employees and 59% for families. From this, the employer pays approximately $420 each month for an individual and $994 for a family. The employee also has a monthly premium to pay, which costs $132 for a single employee and $685 for a family. The individual family component can cost anywhere from $423 at the 25th percentile to $983 at the 75th percentile.
For smaller employers, 17% select a high deductible health plan, 9% choose an HMO, and 48% opt for a PPO when selecting a plan design. Having several plan types to pick from allows for coverage alternatives that range from a limited network with access to certain PCPs, specialists, and hospitals to an open network with access to many physicians and hospitals.
Tax-advantaged savings accounts like Health Savings Accounts (HSAs) and healthcare Flexible Spending Accounts (FSAs) can help small businesses in Texas to assist their workers in managing expenditures and pay appropriately. Both an HSA and an FSA are fantastic methods for employees to manage their medical expenses while still saving money for the company. 39% of Texas's small employers offer an HSA, while 40% provide an FSA.
Dental and eye care perks are two of the most important elements when evaluating your comprehensive employee benefits package. Only 20% of small businesses provide vision coverage, as opposed to 31% that offer dental care. This is far less than what we observe among large businesses. When dental services are provided, 75% of employees utilize them, while 72% take advantage of vision services.
Amongst 198,000 large employers in the state of Texas, medical coverage is provided to over 8,383,000 individuals. However, the monthly premium they cover varies. For individuals, large Texas employers cover 78% of the monthly premium while also paying 67% of the premium for families. Larger employers are generally able to provide most comprehensive medical benefits, which is understandable, and 70% 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 $476 per month for single employees and $1227 for families paid for by the employer. On the employee side, this will cost approximately $130 per month for individuals and $598 for families, with costs ranging anywhere from $86 each month for a family at the 25th percentile to $179 for a family at the 75th percentile. However, if you work for a few select Texas large employers, 11.4% cover all medical expenses for single individuals, and 1.8% cover all expenses for families.
Plan types may differ depending on employee demographics. In big Texas businesses, 55% of employees enrolled in PPO plans, 9% in HMO plans, and 29% in High Deductible Health Plans. Each plan type determines the extent of coverage provided by doctors and hospitals, as well as copays, deductibles, and other elements.
It's critical for businesses to give employees the tools they need to manage their medical expenses tax efficiently. A Flexible Spending Account (FSA) and a Health Savings Account (HSA) are two of the most popular methods for doing so. The majority of large Texas employers, 58%, offer an HSA, while 65% provide an FSA.
Large businesses, on average, have a greater variety of dental and vision plan options than small companies. Large Texas employers provide dental plans to their workers 54% of the time and 80% utilize that option. On the other hand, 37% offer vision care and 72% utilize that service.
If you're having trouble deciding between various medical insurance brokers in your area, contact Mployer Advisor immediately. Whether you're a small or large business in Texas, choosing a broker is a major choice.
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