Group Health Insurance by the Numbers…

Written by: Brad Davis, CEBS

Whenever I have to deliver a premium increase, at least two things seem to happen:

1)      Business owners begin to wonder why they even offer health insurance

2)      We roll up our sleeves and get to work on a creative solution

I specialize in the latter, but I don’t often get asked to address the former.  Here is a helpful statistic I found in the Business Insurance Magazine, December 2013.

Percent of businesses that offer group health insurance by size:

49% – 2-9 employees

76% – 10-49 employees

98% – 200-999 employees

Smaller businesses usually have smaller budgets and it makes sense that offering health insurance dwindles at this level.  But offering health insurance is a tax-free way to add to the overall compensation of your employees.  Also, when up to half your competitors are not offering this option, this will help you to attract and retain the very best employees.

Even for companies as small as 2 or 3 employees it is easy for us to put together an employee benefits package that looks a lot like a Fortune 500 company.  Furthermore, businesses can contribute as little as 50% of the employee only premium of the lowest cost plan.  We can then stack dental, vision, disability, and life insurance on top of that on a completely voluntary basis—in other words, at no cost to you—usually tax-free.

So I ask, why don’t more businesses offer health insurance to their employees?