How to create the best health employee benefits [Data Report]

How to create the best health employee benefits [Data Report] -

The evaluation of health services companies employees often start with some basic questions company can afford health benefits? What type of service should offer the company? How can we provide the best benefits for employees' health?

understand national trends can be a useful first step to understanding how to build them better benefits small businesses. This article presents two main approaches to health benefits and what they mean for a small business budget

Note :. The data in this article is from our recent publication, "the individual health insurance Annual Employer Funded Report 2016." To download the full resource here.

Two main approaches to health services

There are a plethora of health benefits small business options to choose from, but when it comes down to it all come down to two main approaches

1. Health Insurance Group :. The Company purchases a group health insurance policy and employees reimburse the company for part of the premium. The policy is selected and managed by the company
   
   or
2. Defined Contribution :. Each employee buys a health insurance individual policy and the company reimburses employees for part of the premium. The policy is selected and managed by the employees.

An attractive benefits package

While companies consider the approach of health services to take, step back and consider what attributes make a health benefits social great. These reasons vary company to company, but employers and employees tend to both the value of these characteristics:

• quality coverage
• Affordability
• value
• access to preferred and clinical physicians
• stability

with both group insurance and individual health insurance, employees have access to quality coverage. However, with individual health insurance, employees have two main advantages - they can choose a health plan that meets their health care preferences and own the policy. This means that employees receive additional stability knowing that they can keep their coverage when they change jobs.

So what affordability and value?

look at national data.

data

With group health insurance:

• Kaiser Family Foundation (2015) reports the average employer contributes 83 percent premium (single coverage) - contribute $ 5,179 per year per employee

• employees pay the remaining 17 percent of the premium (for individual coverage) - .. contribute $ 1,071 per year

with no health insurance and defined contribution:

• the allocation provided by the average employer (one employee) is $ 3,480 per year per employee

• with defined. contribution, the amount of unused allocations remain with the company at the end of the year. This creates a usage rate.

• In 2015, the average utilization rate of employees was 89 percent. On the basis of usage rates, the annual cost of the average employer is $ 3,097 per employee -. Nearly $ 1,700 less than the average coverage groups

It may also be worth mentioning if an employee has a rate of use of less than 100 percent - eg 80 or 0 percent -. it is a strong indicator of the company is to fully pay the premium of the employee

for employees, with their health care premiums paid in full is a sign to offer the best benefits health. With the collective insurance, employers pay each year - on average - $ 5,179 per employee to cover 83 percent of the premium. With individual health insurance and defined contribution, employers pay each year - on average -. $ 3,097 per employee, in many cases, completely covers the employee's policy

For a detailed overview of the use by the state and industry, download the full report here.

Conclusion

According to the annual report, employers using a solution of defined contribution health benefits realize cost savings of 57 percent on average compared with average costs 'group health insurance. And as this article describes, these savings can be achieved while providing the best health benefits for employees of small businesses.

Which approach do you think creates the best perks of the company's employees? What questions do you have? Leave a comment below!

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