There are multiple factors that determine the cost of small business health insurance plans. Follow along to get the details and ensure you are choosing the the best health insurance plan as a small business owner.
According to the Kaiser Family Foundation , premiums for employer-sponsored family health coverage increased 4% from 2020, up to $22,221. Workers, on average, paid $6,000 toward the cost of the coverage. That means businesses covered 73% of costs. Specifically looking at small businesses, employers contributed $5,500 to individual employees' premiums. Employees of small businesses contributed $1,000.
How much an owner pays depends on what metal tier and type of plan (HMO and PPO) is selected. Your contribution strategy also factors into the cost of health insurance for your small business. Most states require a minimum contribution for employer coverage.
As part of the Affordable Care Act, small businesses can apply for a tax credit. There are other means of financial relief when offering employees health insurance, including tax deductions. Expenses that may qualify include monthly premiums, contributions to an HSA (Health Savings Account), and tax-advantaged dollars.
A tax professional can give you more details on the tax advantages you may qualify for by offering your employees health insurance.
There are added non-monetary benefits to offering health insurance. Increased well-being of individuals comes with confidence in their plan's ability to cover expenses. Employees are more likely to schedule routine check-ups, pursue specialist appointments, and take advantage of the health care benefits, which may reduce sick days. When you offer health insurance, the overall well-being of the workplace is likely to improve.
Ready to see your small business health insurance options? Request your personalized quote today from Blue Cross and Blue Shield of Illinois.