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We just got the deal on our health care for the coming year. Up 9K to $ 91,000.00 for a handful of people. We have had to cut coverage to even keep it this low. There is only one option available to us cheaper than what we have and that one would bankrupt any of our employees who happened to get sick since it covers so little and has such a big copay. As bad as that increase sounds it is a much lower rate of increase than in past years when we were getting 25 & 35% increases.
I just looked into coverage for my two (just hired one this week). Apparently BCBS cut a platinum coverage on individuals a while back, but they do offer it for business. I currently have the gold for my wife and 10 month old and I pay $1500.00 out of pocket. For my family and one employee for platinum is $1600.00.
As I understand it - if the employer pays either 50% or over 50% they get tax credits on their expense.
How much do you have your employees pay? For example, if we go platinum and my employees pay half, they are looking at paying about $210 a month. I am not sure how comfortable they will be spending 10% of their pay for "the best" health care option. Do you know what percentage is common for employer/employee to pay?
We pay 75% of the cost. I think more exactly we pay 50% if they have been with us for less than a year and 75% if they have been with us more than a year. Until a year ago we covered families too but now we only cover families if someone has been with us for 10 years. It was just getting too expensive so that was one of the ways we tried to save a few bucks.
I am in my infancy of learning about healthcare for employees.
It appears the three options are you can put everyone under the same group plan, you can give your employees money hoping they spend it on individual care and another version that is a reimbursement plan.
My accountant gave me the following options to provide healthcare.
Group - Business gets a deduction, although he said it was only good for 2 years. Must get coverage through SHOP, but in some instances can go directly through supplier.
HRA - You offer X amount of dollars to your employees. They bring you receipts and you reimburse them. Once that amount is used up they are on their own. Money is not taxed.
Extra money - Pay your employees more. Regrettably they are not forced to use that money for healthcare, so they could potentially use it for other things. Money is taxed.
HRA seems the most logical since they can use it if they want to. If they have better healthcare though a spouse then they do not have to be involved with HRA.
What's the threshold for when you have to offer healthcare to your employees?
In the US, you must provide it if you have over 50 employees.