Employee medical benefits are an important element of total employee compensation. Employer-sponsored healthcare services cover approximately 2,500,000 individuals in Washington state, including employees at Amazon.com Services and T-Mobile USA.
The Affordable Care Act (ACA) requires businesses with more than 50 workers to provide health insurance to their employees. This might be accomplished in a variety of ways. As a result, we have divided medical benefits into two categories: small employers (1-50 employees) and large corporations (51+).
Among Washington small employers, 70% provide access to medical benefits for their employees, and 68% of employees take full advantage of the offering. With 124,200 small employers in Washington representing over 480,000 employees, the employer covers an average of 79% for single employees and 67% for families. From this, the employer pays approximately $458 each month for an individual and $1205 for a family. The employee also has a monthly premium to pay, which costs $121 for an individual and $591 for a family. The individual family component can cost anywhere from $365 at the 25th percentile to $826 at the 75th percentile.
When it comes to plan design, 13% of small employers enroll in a high deductible health plan, 29% an HMO, and 34% a PPO. Having different plan types to select from allows for coverage options ranging from a limited network restricted to specific PCPs, specialists, and hospitals to an open network with access to many physicians and hospitals.
Small Washington businesses can assist and manage costs by offering tax-optimizing options like Health Savings Accounts (HSAs) or Healthcare Flexible Spending Accounts (FSAs). HSA contributions are popular among Washington's small employers, with 39% taking advantage of it. FSA participation is also high in the state, at 42%. Both are fantastic ways for small companies to help employees manage their medical expenditures cost-effectively while still providing benefits to both employees and businesses.
Dental care is provided by 52% of small businesses, whereas just 42% provide vision benefits, which is far lower than large corporations. This is a significant benefit since 80% utilize dental services and 84% use vision services. As a result, employers should include both dental and vision coverage when designing their complete benefits package.
The 49,000 large employers in Washington provide medical coverage to over 2,068,000 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 Washington that take advantage of this benefit is 75%. Large Washington employers cover an average of 81% of the monthly premium for single employees and 75% of the premium for families. This equates to an employer cost of $520 per month for an individual and $1488 for a family. For the employees, this equates to an average of $118 per month for single employees and $492 for families, with costs ranging from $80 each month for a family at the 25th percentile to $164 for a family at the 75th percentile. If you are lucky, 13.4% of large Washington employers cover all medical expenses for individuals and 5.4% for families.
Plan types can be selected by a variety of criteria, depending on employee demographics. In Washington, 38%, 31%, and 22% of workers opted to join an HMO, PPO plan, and High Deductible Health Plan, respectively. The differences in plan types influence the amount of coverage accessible to physicians and hospitals. It also has an impact on copays, deductibles, and other features.
Of large businesses in Washington, 58% offer a Health Savings Account (HSA) and 68% offer a Flexible Spending Account (FSA). Both an FSA and an HSA are essential elements when advising employees on how to manage their medical expenditures tax-efficiently.
Larger businesses generally have a greater offering rate than smaller ones when it comes to dental and vision plans. In Washington, 76% of large employers give dental insurance and 85% utilize the benefit, while 58% offer vision coverage and 85% utilize the opportunity.
Whether you're a small or large employer in Washington, choosing a broker to create your healthcare benefits is critical. Contact Mployer Advisor right now if you want a list of businesses in your area that specialize in medical benefits.
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