How Much Does it Cost to Offer Health Insurance to my Employees?
Setting up a comprehensive benefits package for your employees has become quite a streamlined process. Thankfully, the days of calling around and waiting for companies to return your quotes are gone. With more independent contractors and larger corporations providing the mainstay of our economy; insurance brokers and a variety of aggregators are happy to do all of the leg work on your behalf.
Health Insurance Benefits
It is important to review each package carefully to ensure you are getting the best bang for your buck. Do you have a preference for better vision and dental care? Does your company want to offer 100 percent of prescriptions or are you willing to cover 80 percent and let the employees pick up the remainder? Deciding on your priorities ahead of time will help you negotiate the best plan for your crew. You don't want to be over paying for coverage you don't need or dealing with extra sick days and less staff because your coverage is not adequate.
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Estimated Health Insurance Plans
Be prepared to pay $450 to $500 for an individual medical plan. Couples can range from $650 to $1000. Families with children will often be in the ball park of $1500 to $1800. The vision and dental portion is significantly less; expect to add $40 to $50 per employee. In order for a broker to give you an accurate quote, you will need to have some accurate facts for them to shop around with. The age of your employees, tobacco use and location will influence your bottom line.
Total Coverage or Partial Coverage?
Once you determine the cost of the plan that best suits your needs, you can decide if your company will pay 100% or not. Many work places utilize a 75% to 25% system. The company covers three quarters of the health insurance plan and the employee pays for the remaining 25% each month. This can be calculated to come off of paycheques to keep things paid in full and easier for your staff to budget. It is vital to determine how much your health insurance benefits will cost the company on an annual basis.
Many companies like offering their employees some flexibility with their health insurance. These plans may have an employee contribution available for those who desire extra coverage and are willing to pay out of pocket. Other plans work on a lump sum basis. This enables members to customize their benefits. Some may wish to visit a Chiropractor while others may prefer Physical Therapy or Deep Tissue Massage. Acupuncture, visits to a Natural Path and other alternative practices may or may not be included. Ensure your employees research their appointments ahead of time to avoid disappointment or extravagant bills at the end of a health care treatment.
Remember, many potential employees will ask about how comprehensive your benefit package is at their interview. If it is between you or another company; be prepared to watch them take the other job if your benefits are less than satisfactory. Most young families with kids rely on a good benefit package. Get a variety of quotes to ensure that you can offer the best package you can afford. Happy employees lead to less turnover. Build your business successfully and safely by providing a competitive health insurance package that will entice your employees to stay healthy and active.