Mark, good topic!
We are seeing health care insurance costs approach $2,000 per month for a family. It's pretty wild.
I am particular curious how integrators are handling it with lower paid employees. It's one thing to pay ~$25,000 a year to someone making $100,000 salary. It's another thing for a tech making $35,000...
IPVMU Certified | 11/05/15 04:32am
We paid 75% of the employee cost for medical last year (employee portion only, not spouse or children). We just renewed the same plan with the same provider for a 19.7% increase. We decided to cover the additional costs. The employees pay the same as last year. We also pay for $50k in term life insurance for all employees. I will say that our broker worked his butt off and did all he could do in the market. The insurance market continues to get ever more expensive, tough! By the way, we have a 47-employee company, so are small group.
IPVMU Certified | 11/05/15 01:35pm
Like everyone, we’ve seen our health insurance premiums go up over the past couple of years. We used to cover 100% of a very comprehensive plan for our full-time employees. Last year the rates sky rocketed and the plan we had been using for years was no longer available. So we picked out three plans from a different carrier, we told our employees we would cover the most basic plan (IMO the plan is garbage and still more expensive than the old plan) and if they wanted one like we had before they would need to pay the difference. Obviously this made everyone very upset, including myself. We have been dedicated to our employees for nearly 30 years and have always done our best to take care of them. Not we’re not able to anymore, it’s just too expensive.
I am there with you Mr. Bazyk. We are almost identical in what we have offered in the past, and what the reality is today.
In doing a significant amount of research about how to contain this a little, I would recommend you look into a Section 105 Healthcare Plan. It is a method to reimburse your employees for health care dollars, non-taxable to them, and allows them to shop for the best plan and the best rate on the open market, where believe it or not, they will probably beat the rates you can supply. That is what is happening when I look at details and plans. You supply XXX dollars per month, they take that money and shop. What they buy is their business. How much they pay is their business. They just have to buy something.
President Obama said that if I liked my health insurance plan, I could keep it. And I did, as it was grandfathered for the first two years. Now I am being forced to choose an ACA-compliant plan that costs nearly $10,000 more per year! My employer (a manufacturer) generously contributes $600 per month. However, this amount does not touch the increase. Even bumping down to bronze tier coverage will cost me $200 more per month.
Don't get me started! - We've paid 100% of employee for as long as we've been with a PEO. 20 years. You might check into a PEO..
I feel Marks pain, our average H/C costs jump to almost $1,700 monthly in 2016. Politics aside, we simply have to deal with what we have. Long ago I realized I wasn't interested in being a large business, but was more interested in be a very profitable business. (BURNT OUT TRYING TO BE BIG) We've outsources payroll/benefits to a POE for decades, outsource all cabling, and every client since 1995 has a maintenance support plan.
I've worked for two major non-Chinese Asian manufacturers over the past four years. I paid about $450/month at my last gig for myself and my entire family. My current employer covers all heath insurance at no cost to me whatsoever, but, being a large conglomerate, we own the insurance company. I worked for a few VC startups before that, and insurance was anywhere from $800 to $1500 a month.
How are deductibles impacting your plans? This NY Times article is saying that higher deductibles are a growing issue, especially under the new government marketplace. Evidently, there are many plans with deductibles of $3,000 or more.
My recollection is that most plans I have seen historically were small deductibles, say of $500 per year or so.