FAQ - How many small businesses offer health insurance

FAQ - How many small businesses offer health insurance -

If you are a small employer, there a 50-50 chance you do not currently offer traditional small business insurance health . If you are a micro business, chances are even less likely. So how many small businesses currently offer health insurance? And, what does this mean for small business health insurance options? Tip -. The answer may surprise you

More than 2.7 million small and medium businesses do not offer health insurance

There are about 7.4 million employers in the United States. Did you know that the majority are micro and small enterprises?

Currently in the US, 6 million businesses have fewer than 0 employees. That's 82% of all employers.

But what might surprise you is that the majority (62% of US employers) have fewer than 10 employees -. 4.6 million businesses

These are employers who are less likely to offer a traditional group health insurance.

• 46% of all small and medium enterprises (with fewer than 0 employees) n 't offer health insurance sponsored by traditional employer. This represents over 2.7 million employers.

• 56% of all micro employers (with fewer than 10 employees) do not offer health insurance sponsored by traditional employer. That's 2.6 million employers.

The reason why small businesses do not offer health insurance? According to a recent survey by Kaiser Family Foundation , the main reason is cost.

When you look at the numbers, it is not surprising.

From 1999 to 2014, the cost to cover one employee with insurance group health almost tripled $ 2196 / year to $ 6,025 / year in 2014. as with family coverage. From 1999 to 2014, the cost to cover a family with group health insurance also nearly tripled, from $ 5.70 / year to $ 16,834 / year in 2014.

small business Group health insurance Cancellation

the rate of increase in group health insurance premiums is unsustainable, especially for small and micro employers.

As such, the percent of employers providing group health insurance has been on a decline in the last decade due to rising costs and because of health insurance solutions.

in just the past four years, the number of micro employers offering health insurance dropped from 59% in 2010 to 44% in 2014.

Source Chart - KFF

small business adoption of individual health insurance Money

therefore, if 2.7 million small businesses are not offering group health insurance, what they offer?

The current trend is to adopt individual repayment of health insurance.

person with reimbursement of health insurance, the company can cancel its group health plan (if offered) and instead of paying employees for insurance premiums disease.

There are two ways to go about the reimbursement of employees for individual health insurance ( see this guide ), and there are options available before tax and after tax.

Conclusion

How popular will individual health insurance reimbursement obtain? All signs say that this approach is the future of health benefits for small businesses, not just a passing fad. In a recent Whitepaper we expect that 60% of small businesses will eliminate the traditional group health insurance for the individual reimbursement of health insurance in 2017 -. A little more than two years away

photo credit - iStock

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