Survey: Small Businesses Keeping Pace with Health Benefits Offered by Employers Nationwide
INDIANAPOLIS, Aug. 22, 2017 /PRNewswire/ -- Small employers, those with less than 100 employees, have a reputation for not offering health insurance benefits that are competitive with larger employers, but new survey data from United Benefit Advisors reveals they are keeping pace with the average employer and, in fact, doing a better job of containing costs. According to UBA's new special report: "Small Businesses Keeping Pace with Nationwide Health Trends," based on the most recent UBA Health Plan Survey, employees across all plan types pay an average of $3,378 toward annual health insurance benefits, with their employer picking up the rest of the total cost of $9,727. Among small groups, employees pay $3,557, with their employer picking up the balance of $9,474—only a 5.3 percent difference, finds UBA.
"While employers with 500 to 1,000 or more employees may indeed offer better coverage (lower copays, deductibles, in-network out-of-pocket maximums, and monthly premiums), small employers have a lot to offer employees when it comes to wages, purpose, flexibility, etc.," says Peter Weber, President of UBA. "Small employers would do well to benchmark their plans against their same-size peers and communicate how competitive their plans are relative to average national costs, deductibles, copays, and more."
When looking at average annual cost per employee, UBA's data shows that small businesses actually cut a better deal even when compared to their largest counterparts—their costs are generally below average. For example, the average annual cost per employee (all plans) is $9,727, but for small groups with 25 to 49 employees, the average cost per employee is only $9,165.
"Keep in mind that relief such as grandmothering and the PACE Act helped many of these small groups stay in pre-ACA plans at better rates, unlike their larger counterparts," says Weber. "Generally speaking, however, small businesses are not cutting corners with their coverage. Copays, deductibles, and HSA funding (when offered) are generally in line with average employers."
For more detailed information, including a chart of detailed plan costs comparing small to large businesses nationwide, download a free copy of UBA's Special Report: "Small Businesses Keeping Pace with Nationwide Health Trends" available at http://bit.ly/UBA-small-biz.
Contact a UBA Partner Firm for a customized benchmark survey based on industry, region, and business size at http://bit.ly/UBA-partnerfirms.
About United Benefit Advisors
United Benefit Advisors® (UBA) is the nation's leading independent employee benefits advisory organization with more than 200 offices throughout the United States, Canada, and the United Kingdom. UBA empowers more than 2,000 Partners to both maintain their individuality and pool their expertise, insight, and market presence to provide best-in-class services and solutions. Employers, advisors and industry-related organizations interested in obtaining powerful results from the shared wisdom of our Partners should visit www.UBAbenefits.com.
Media Contact
Carina Sammartino
Media Relations
760.331.3547
[email protected]
SOURCE United Benefit Advisors
Share this article