Do you ever wonder how your employee benefits package compares to other businesses in your area? You don’t have to wonder much longer.
The 2017 Zenefits Small Business Benefits Benchmark Report was released today, offering a snapshot of plan types, contributions, premiums, deductibles, copays, and out-of-pocket costs across different regions.
Employers Contribute Nearly 25% More than Required to Monthly Premiums
While there is some diversity in the number of healthcare plans offered based on company size (larger companies typically have more offerings), small businesses consistently contribute more than required to employer-sponsored health insurance. When deciding what to contribute, small businesses typically consider talent acquisition and retention, pre-tax considerations, and benefits package.
Interesting Stat: Companies contribute an average of 73% toward individual premiums (nearly 25% more than required) and 38% toward dependent premiums.
PPOs Dominate All U.S. Regions Despite Higher Costs
Many companies choose PPOs (Preferred Provider Organization) despite the higher cost, because they provide more flexibility in provider access, movement of care, network size, and out-of-network coverage.
Interesting Stat: PPOs remain the most popular plan type for small businesses across the country, accounting for 49% of plans.
Deductibles Increasing, but Out-of-Pocket (OOP) Stabilizing
While deductibles are a key indicator when evaluating health care plans, changes in policy, including the ACA cap on out-of-pocket costs, have made OOP expenses a more prominent consideration, especially as deductibles continue to increase.
Interesting Stat: Average deductible for individual health plans is $1,650.
For more highlights, download the full report now.
Employer-sponsored health benefits are a huge benefit to employees and a great tool for employers to recruit new talent. So, employers should use the data from the Zenefits report to see how they stack up against similar companies.
“Great employers tend to give employees options, and they often contribute generously. They are working hard to help employees find the best possible benefits programs for their families,” said Josh Bersin, principal and founder, Bersin by Deloitte, Deloitte Consulting LLP. “Even if healthcare costs increase, the social contract between many employers and employees remains strong: employers of all sizes continue to contribute significantly to their employees’ healthcare benefits.”
For more benchmarking data, download the full report now.