Do Your Small Business Benefits Stack Up?

Do Your Small Business Benefits Stack Up?

Small businesses make up over 98% of businesses in Rhode Island, according to the US SBA. And while those with less than 50 full-time workers aren’t required to offer health insurance under the Affordable Care Act, many choose to in order to better attract and retain employees, build a healthier workforce and boost productivity.

Nationally, about 56% of small firms offer health benefits to at least some of their workers. Rhode Island bests that figure, with a recent survey showing that 70% offer health benefits, an offer rate that increases with the number of employees. Specifically, 65% of firms with 3-9 workers offer health benefits compared to 88% for those with 25-49.

Want to see if you’re offerings are competitive? Here’s what Rhode Island small employers are providing according to a Rhode Island Foundation/NORC 2020 survey.

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- Few offer health benefits to part-time workers. Just 18% of small firms that have or hire part-time workers offer health benefits to these employees.

- A PPO remains the most common plan type offered, followed by an HMO.

- For 39% of small companies, their largest, or only, plan is a high deductible plan with a savings option.

- The average deductible among firms whose plan has a deductible is $1,867.

- The average monthly premium for single coverage is $732, with employees paying on average $240 a month for their coverage.

- For family coverage, the average premium a month is $1,834, with employees contributing an average of $792 for the coverage.

- Just 14% have implemented a limited or tiered network plan.

Read the full report here.

 

Sam Slade is Managing Director, Employee Benefits, at The Hilb Group of New England, where he delivers consulting and brokerage services to local employers. He has extensive experience in all aspects of employee benefits, including underwriting, plan design, communications, compliance, and analytics, with a particular focus on alternative funding and self-insurance. Sam lives in South Kingstown with his wife and three sons.