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Medical benefits for workers are a must-have for a well-rounded compensation package. There are roughly 1,700,000 people in the state of Virginia who have health insurance, whether you work for businesses such as Northrop Grumman or Capital One Financial.
The Affordable Care Act (ACA) states that if you have more than 50 employees in the state of Virginia, you must provide healthcare to them. We've broken down what medical benefits look like regardless of your company size, whether you're a small employer (1-50 people) or a big employer (51+).
There are 69,000 small employers across Virginia, representing over 290,300 employees. Benefit plans range from the bare minimum to comprehensive employer coverage. 68% of Virginia employers provide access to medical benefits, with 64% taking advantage of the benefit. For small employers in Virginia, the employer covers an average of 77% for single employees and 62% for families. This costs the small employer approximately $448 each month for an individual and $1072 for a family. The employee then has to pay a monthly amount as well, which comes out to be $133 for individuals and $652 for families. To understand the ranges, a family's individual component can range anywhere from $388 at the 25th percentile to $828 at the 75th percentile.
For small businesses, 17% select a high deductible health plan, 9% choose an HMO, and 48% opt for a PPO. These numerous plan options allow for a wide range of coverage, from a limited network that includes only certain PCPs, specialists, and hospitals to an open network with access to many doctors and hospitals.
By providing tax-optimizing plans such as Health Savings Accounts (HSAs) or healthcare Flexible Spending Accounts (FSAs), small businesses in Virginia can help their staff manage costs and pay appropriately. Both an HSA and an FSA are fantastic methods to assist employees with their medical bills while saving the employer money. 36% of Virginia's small employers provide an HSA, whereas 44% provide an FSA.
34% of small employers offer dental benefits, while only 21% provide vision, which is lower than big businesses. When they are given the option, 75% take advantage of dental benefits, and 73% utilize vision benefits. Employers may find that offering both dental and vision coverage is important when considering their benefits options for the year.
In the state of Virginia, 38,000 large employers provide medical coverage to over 1,459,000 individuals, with 70% taking advantage of the benefit. Larger employers, compared to smaller ones, are generally able to provide most comprehensive medical benefits. On average, Virginia employers cover 79% of the monthly premium for single employees and 70% of the premium for families. On the employer side, this equates to a monthly premium average of $508 per month for singles and $1323 for families. For employees, this costs approximately $131 per month for single employees and $562 for families, with costs ranging anywhere from $84 each month for a family at the 25th percentile to $163 for a family at the 75th percentile. However, if you’re lucky enough to work with a few select Virginia large employers, 9.0% cover all medical expenses for single individuals, and 1.8% cover all expenses for families.
Employee demographics have a significant impact on plan designs. 55% of employed people in Virginia enroll in PPO plans, 9% in HMOs, and 29% in High Deductible Health Plans. The plan type influences the range of coverage provided by doctors and hospitals as well as copays, deductibles, and other elements.
It's critical for businesses to offer employees the option of tax-advantaged medical expense management. Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are two of the most popular options. An HSA is available at 55% of large Virginia companies, while an FSA is provided by 67%.
Larger businesses generally have a higher offering rate than smaller businesses when it comes to dental and vision plans. In Virginia, 57% of major employers provide dental insurance, while 80% utilize the benefit, and 38% offer vision coverage, with 73% taking advantage of that option.
If you're looking to find the best insurance broker in your region that specializes in medical benefits, contact Mployer Advisor right away. Whether you're a small or large employer in Virginia, selecting a broker is a major choice.
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