There are several factors that can influence the cost of employee health benefits. By understanding these costs as a business owner, you can budget for the most competitive benefits package to hire and retain top talent.
In this article, we’ll discuss the average cost of employee health benefits and the factors that influence these costs, so you can make the most informed decisions for your company.
If you want a more concrete answer on what you should expect to pay for employee health insurance, contact Cosmo Insurance Agency.
Types of Employee Health Benefits
The most common employee health benefits are health, dental, vision, and life insurance. While there are lots of add-on benefits that can be incorporated into a benefits package, these are the ones that employers typically offer.
For example, voluntary benefits like pet insurance, cancer insurance, critical insurance, and paid medical leave may be offered by certain employers and benefits packages. These add-on benefits can enhance a compensation package, but the core offerings remain health, dental, vision, and life insurance.
The Average Cost of Employee Health Benefits
When I start a conversation with someone calling me who doesn’t have health insurance coverage in place for their staff, I would estimate anywhere between $400 to $500 a month per employee. I always mention that a 50% employer contribution is a must if you want employees to enroll. A goods benefit package with solid contributions helps create a positive work environment.
Believe it or not, we’ve seen premiums recently go down to $300 a month per individual for great plans. The designs of these plans are rock solid, so you never know—you could find competitive rates like these out there.
Factors That Reduce the Cost of Employee Health Benefits
When selecting health benefits packages for your employees, it’s important to
explore the market and evaluate every available option. A licensed insurance broker can assess every option on your behalf, so you won’t miss out on the most affordable insurance plans.
How Age Demographics Impact the Cost of Employee Health Benefits
Before offering a benefits package, we study the average age of your workforce to understand how it might affect health insurance costs. In some markets, age doesn’t really impact premiums—whether an employee is 20 or 50, the cost will remain fairly consistent.
However, in most cases, a younger average age (typically under 42) tends to lower overall premiums. This can help your business secure more competitive benefits while improving your bottom line.
The Importance of Employee Health Benefits and Wellness Programs
Wellness programs are really important. Most of your health insurance carriers will provide a wellness program. In addition, it’s important to have a wellness program to encourage your employees to have their preventive care and wellness visits annually.
With many businesses, we have raffle drawings and games where the employees check whether they went for their wellness checkup. The RX benefits are another way to control costs. These are all important factors that your HR and your broker should consider to manage and reduce costs for employee benefits.
Find A Competitive Employee Health Benefits Package with Cosmo Insurance Agency
A competitive employee benefits package is just as important as a good salary when hiring and retaining employees. A broker at Cosmo Insurance Agency can help you find the best benefits package to attract and retain top talent.
Contact Cosmo Insurance Agency today to speak with a broker about the best employee benefits package for your company.
