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Finding an employee plan for the right price

The best group health plan for employees and their families may not mean purchasing the biggest or most costly plan.

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How much will it cost to insure my employees?

The cost of a plan is flexible and determined by these three factors :

  • The type of plan you choose
  • The network you choose
  • How much you contribute

The premiums – the per-month cost for coverage - is typically shared by both the employer and the employee. How that contribution is divided is up to the employer.

To give you an idea, the average 2017 annual premium for employer-sponsored plans was $6,690 for single coverage, with employers contributing 82% of the premium.1

What do I do next?

Before you sign up for a health plan, there are just a few more things you might want to consider:

Which plan is best for my small business?

There is a lot to consider when selecting the right health plan. These are the three most popular plan types detailed below:

Popular Plan Types

Plan Types Pros Cons High Deductible
  • Typically has a lower monthly premium
  • Attractive to groups interested in catastrophic coverage
  • The higher deductible must be met by your employees before insurance kicks in
  • For 2018 per the IRS these plans must have a minimum deductible of $1300/single and $2600/family
 Copay Only
  • No deductible for in-network services, employees pay fixed copay amount
  • Great for employees who want predictable costs
  • Deductible typically applies when using out-of-network provider and facilities
 Traditional
  • Uses a combination of co-pay, deductible & co-insurance
  • Cost reduction available when in-network providers used
  • Employer typically pays 80% of the cost

Sources:

  1. “2018 Employer Health Benefits Survey;” Kaiser Family Foundation, 2018, opens new window

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