Insurance benefits - Cost to employees

jdn · September 2006

[font size="1" color="#FF0000"]LAST EDITED ON 09-21-06 AT 08:31AM (CST)[/font][br][br][font size="1" color="#FF0000"]LAST EDITED ON 09-20-06 AT 09:03 AM (CST)[/font]

Does anyone know where I can go to research the average cost of benefits for employees? Boy, that was an awkward sentence!!
What I am trying to find out, if possible, is what the average percentage of medical and dental insurance an employee pays, and what percentage of the total cost the company pays.
I feel our company is very generous with our benefits package. The company pays 90% of the employee coverage, and between 70% and 75% for family/child/spouse coverage. As we all know, the costs are increasing in leaps and bounds, and we have not passed any of the increase on to the employees in 3 years. We may have to pass some of the cost on in 2007. I would like to have some statistics to help out.
Thanks in advance for your help!
Jamie

Gloria · September 2006

We increased the medical cost sharing for our employees a couple of years ago. Currently, our full time employees, who work 35 hours or more, contribute 10% towards the medical premiums through payroll deductions. We have a schedule for part timers working from 20 to 34 hours. The less hours an employee is regularly scheduled to work, the more he/she will contribute towards the cost sharing.

Here is our current payroll contribution schedule:

Monthly premiums billed: Single - $474.76; Two Person - $955.92; Family - $1,558.58

Annualized premiums billed: Single - $5,697.12; Two Person - $11,471.04; Family - $18,702.96

Annualized payroll contribution towards the cost sharing for employees working 35 hours or more: Single $569.71; Two Person - $1,147.11; Family - $1,870.29

Annualized payroll contribution towards the cost sharing for employees working 20 hours: Single $1,605.92; Two Person - $3,168.95; Family - $4,877.62

I hope this helps a little.

G

dynamite9551 · September 2006

if you have a broker you work with, they can usually give you this data. we pay 80% of the entire premium, employees pay the difference. however, we too may need to look at this "benefit" for the 2007 plan year. some of our decision is based on "how much" the employee may be paying for office visits, co-insurance, deductibles. We typically try to absorb as much of the cost for the employee as possible, but we might even reduce what we pay for dependent coverage since that is where most of our cost is.

Dutch2 · September 2006

You will find all sorts of benefit costs structrues as it is up to each company and what they can affort to do.
We pay 100% of ee premium cost and 50% of dependent premium cost. We set our deductibles up on a three tier system based on annual income. The more you make the higher your deductable.

NaeNae55 · September 2006

Our plan has 3 deductible levels. The higher the employee's deductible, the larger percentage we pay (they take on more risk so we take on more risk).

Our percentages are 65% for low deductible, 78% or the medium deductible, and 85% for the highest deductible. We pay the same percentage regardless of single or family coverage.

Good luck!

Nae

jdn · September 2006

Thank you all for your input. I have only been on the forum a few times, but always get wonderful information. What a great resource!

I know there are probably as many answers as there are businesses out there, but this gives me some ideas.

Thank you NaeNae. I think your plan is most like what we are aiming for. We currently have one deductible, but are considering different levels. Increasing the employee out of pocket is never easy, but having options will help.

Hope you are all having a great Tuesday.

Insurance benefits - Cost to employees

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