How much does a group health plan cost?
Planning to offer group benefits
While businesses with fewer than 50 full-time employees are not required to offer a group health plan to employees, many organizations still choose to do so. Offering a medical plan benefit is a great way to improve recruitment and retention and can sometimes be the best coverage option for employees. But how much does a group health plan cost, especially for small businesses?
Health plan costs vary pretty substantially depending on the type of plans offered, the region in which your business operates, and the demographic makeup of your employees.
That said, on average, annual premiums for single coverage for small businesses total $6,163 and annual premiums for family coverage total $16,625, according to the Kaiser Family Foundation.
Small group premiums tend to be more expensive in the Northeast, and less expensive in the West, with the Midwest and South close to the national averages.
How much of the premium are employers responsible for? Carriers used to require 50 percent contribution for at least the employee-only premium. Some carriers and groups will allow for a smaller percentage, but it depends on the situation.
Costs can be contained in a number of ways for small groups, including implementing different funding strategies or plan designs such as Health Savings Account-eligible plans. To learn more, or if you have questions about your particular group or cost concerns, click below to schedule a free consultation with a Bernard Health advisor.
Planning to offer group benefits While businesses with fewer than 50 full-time...