Here's the TLDR. On average, the annual health insurance premiums for small employers was about $7,483 per year for single coverage in 2020, of which they contributed $6,297.
Small businesses have had a tough year and a half due to the pandemic. Offering health benefits may not be their top priority for obvious reasons. However, if you're a small business owner, you know the importance of staying open and competitive, especially during uncertain times.
Many small employers fail to offer health benefits on the grounds of cost and complexity. Since employers typically contribute around 83% of the premiums per year, it's understandable why these benefits don't always make the top of the list. However, small business health insurance is less expensive than individual health insurance due to the larger risk pool. Plus, they help keep your company competitive in the job market.
Health insurance, being one of the most coveted benefits in the job market, is offered by most employers in America. However, the question of whether or not you should provide health insurance is based on how common employer-sponsored health coverage is in your state. For instance, a recent survey showed the percentage of workers covered by employer health insurance in New York is 49.8% (as of 2019). So if you run a business in New York, there's almost a 50/50 chance that you'll succeed without offering health insurance benefits - but the stakes are quite high. Comparatively, the percentage in New Mexico is just 36.6%, meaning employers in New Mexico can go without offering health benefits to their staff.
So, should you offer health insurance to your team? The short answer is yes - if you intend on attracting and retaining talent and loyal employees in the long term. That said, try this cost-saving exercise first: study your surroundings and check for the workplace benefits norms in your area. Not all states have a high demand for health insurance benefits, and depending on your budget, you may be able to recruit good staff even without offering benefits right away.
Talk to the professionals at NY Small Health to help you navigate your company’s health insurance needs, figure out your budgetary requirements, and land on practical, affordable solutions.