Does anyone have stats on what percentage of health benefit cost is shared by the company vs. the employee for mid size companies (250-500 employees)? It would be helpful to know the break down by Employee only, Employee and spouse, Employee and family).
A great resource I have seen is a survey that comes out annually from the Kaiser Foundation - http://kff.org/private-insurance/report/2013-employer-health-benefits/.
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Thanks, great information.
Thanks Regis for posting this resource. Very useful and informative.
David,
The Affordable Care Act requires that the employer pay for 50% of the employee only premium. Further, the amount that the employee pays can not exceed 9.5% of his gross income.
Several schools of thought - what you really want to do for your employees to limit turnover, what others (competitors) in your industry are doing, what you can afford, what other employers in your area are doing to attract good employees, etc.
I have seen employers your size pay for 75% to 80% of the premium, even for dependents because that is "what they have always done and what is right - and some stupid law is not going to make me change."
Obamacare has only added to the confusion in the landscape. Keep in mind that there are options out there where you can raise the deductible and insert another product to cover the deductible difference, saving quite a bit of money on your plan. Email me at [email protected] and I will explain.
Dabney Wellford
Comparable companies typically pay 90 to 100% of the employee premium, and an average of 67% of the costs for dependents. In some cases, this is based on a benchmark, as in "I pay 100% of employee and 75% of dependent costs of the Kaiser HMO, and employees pay the difference for dependents or if they select a richer plan." I've consulted with dozens of companies at this size, all in a 'white-collar' environment; primarily high-tech, financial services, and professional service firms with Northern California HQ's and this has been the consistent approach. In highly-competitive situations, companies pay the full 100% of all premiums.
Dabney,
My understanding was that the 50% requirement was only if the company wanted to receive the
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Dana,
The 50% requirement is if you are going to offer health coverage. along with the requirement that the employee cost not exceed 9.5%, regardless of size.
How big is your company?
Many public agencies continue to pay 100%. It is an unsustainable endeavor.
Check on any of the various cities that have declared bankruptcy. Although crushing defined benefit plan costs are blamed. You will find their health care benefits, both during and PERB, to be part of the issue as well.
But, public employees and especially, public employee unions, will not hear of any change. Ask me how I know.
