You probably already know that the cost of living varies greatly from region to region. Where you live dictates how much you pay for just about everything, from housing to the cost of dinner at your favorite restaurant. But did you know that your zip code also plays a role in the cost of group health insurance? According to a recent survey conducted by United Benefit Advisors (UBA), geography was one of several factors that affect the cost of health insurance.
Over the past few years, Americans have been increasingly frustrated over the rising cost of group health insurance. While employees see their take home pay shrinking, not many stop to ask themselves how this affects their employers. Perhaps they believe that the cost is being passed along to them, but how will they know if business owners don’t tell them?
According to a report recently released by the Congressional Budget Office (CBO), the U.S. government will provide a health insurance subsidy of approximately $660 billion in 2016, with $266 billion flagged for employment-based (group) health insurance. While group health insurance covers a significant number of workers in the U.S., the employment-based enrollment numbers are expected to drop given the alternatives offered by the Affordable Care Act (ACA) and the changing composition of the workforce. Next, we’ll dive into the details of this employer-sponsored group health insurance forecast.
Small business owners who offer health insurance - or who are considering offering health benefits - have an important question to consider: which type of benefit will be the best for the company and employees? Traditional business sense says offering a group health insurance plan is the best way to go, but here’s something to consider - cancelling (or not offering) group health insurance may be a kindness to employees, and to your small business’s bottom line.
As group health insurance costs continue to rise, one strategy employers evaluate is a formal wellness program. In fact, a recent Wells Fargo Insurance survey found 51 percent of employers are looking to add or increase wellness initiatives to improve the health of their workforce. Employees appear to be on board as well. According to a recent HealthMine Survey, 75 percent of employees want their employer to offer health and wellness incentives. So, do wellness programs really save companies money? The answer may not be so cut and dry.
Despite the market shifts in the United States toward individual health insurance coverage, the majority of nonelderly Americans (56 percent) still receive group health insurance coverage through an employer. The coverage rate, however, has decreased slowly from 67 percent in 1999. This is according to a new study by the Kaiser Family Foundation (KFF) that analyzed offer and coverage rates in 2014.
Editor’s Note: This article has been updated with the most recent group health insurance cost information. The article was originally published in September 2014. As small employers research health insurance coverage options, it is common to evaluate different strategies and the cost. So, just how much does group health insurance cost? In 2015, Kaiser Family Foundation (KFF) found the average premium for single coverage was $521 per month, or $6,251 per year. The average premium for family coverage was $1,462 per month or $17,545 per year.
Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.