How much is it going to cost in regards to group health insurance?

 

HOW MUCH IS IT GOING TO COST?                         

 

 

That is typically the first question I am asked by business owners when considering offering health benefits to their employees. With the many changes in healthcare and the employer mandates, I find most employers want to be compliant, however, offering an affordable healthcare package is important.

Many employers contribute a percentage of premiums, which requires a minimum of 50% employer contribution of employee-only premium.   The percentage of premium is a little more volatile when planning your budget, your contributions will increase as the premiums increase each year at renewal.

Another employer option is a defined contribution. Defined contribution is where the employer’s contribution is a flat dollar amount for each employee.   For example, the employer’s contribution is $200 per employee, the employee chooses a health plan that costs $400, the employee would have $200 from the employer, the employee’s responsibility would be $200, which would be payroll deducted.

If your employees pay a portion of their premium, don’t forget to have a Section 125 POP plan in place, this allows the employee’s portion of the premium to be deducted pre-tax, which lowers their taxable income, and in turn, provides a saving on the employer’s Work Comp rates.

If you are interested in getting more detail on defined contribution, give Sky Financial & Insurance Services, to get more information. 916-540-7000

Deep thoughts by Jenny Ebinger

Request Your Quote Here

Are you ready to save time, aggravation, and money? The team at Sky Insurance Group is here and ready to make the process as painless as possible. We look forward to meeting you!

Need Policy Service or Documents?

Login to our online client portal to download ID cards, check billing, and/or report a claim. Click the button below to login securely.

Call Email Claims Payments