The March 2017 Zenefits Small Business Benefits Benchmark Report is now available. Representing data from more than 8,000 Zenefits customers, the report examines how plan types, contributions, premiums, deductibles, copays, and out-of-pocket costs differ across regions. The study is intended to help businesses make more informed decisions by providing insights into the choices of similar companies within the same region and nationally.
So far the response from customers has been great. As one customer said: “Please pass along my thanks to the team that created the Benefits Benchmark Report. This information is GOLD to businesses like mine. I also have to say that in addition to appreciating the data, I feel “heard” by Zenefits. I asked for this type of information and the next thing you know… BOOM, there it is,” Patti Gamble, Sr. Manager, HR & Operations, elevate.
A quick summary of the Insurance Premiums section of the report:
One area that is top of mind for both businesses and employees is the rising cost of health insurance. The report found that average monthly premiums for both individuals and families are relatively stable across the country, with above average costs in the Northeast.
Premiums can vary significantly for certain regions given the different plan design options, carrier underwriting, provider network strength, etc. For example, companies based in New York with dominate EPO plans have higher average premium costs of approximately 22% compared to California. Another cause of some variation might be an employer’s physical location versus where the majority of the employees live. This can cause a big coverage and premium cost differential.
Trend: Total premiums continue to rise, but at lower increases, thanks to greater selection, new technologies and better data availability.
The average monthly premium for individuals is $466 while the average monthly premium for families is $1,168. For an employer, the most important and certainly the most visible aspect of health insurance is the total premium cost. So while some group premiums have experienced slower increases than in the past, they are still growing in the mid-to-high single digit territory. What is helping to slow the increases? There are a few contributors:
Trend: The average monthly premium for individuals and families is stable regardless of company size. This is not a big surprise as smaller companies are typically just a few points higher in costs.
Employee benefits, specifically health insurance, represent a huge investment for small businesses and remain a key consideration for attracting and retaining employees.
The March 2017 Zenefits Small Business Benefits Benchmark Report can help answer common questions including:
To download the report now, click here.