Want to know the average cost of health insurance? Find that out and see how you can choose the best insurance for your small business.
Are you a small business owner trying to understand your insurance options? Figuring out the average cost of insurance and using eHealth.com to compare prices might help you find the health insurance plans that work best for you and your small business employees.
Average cost of insurance for a small business
In 2016, the average cost of a small business group insurance plan bought through eHealth was $1,432/month.
Keep in mind, this also varies from state to state. In 2016, eHealth’s Insurance Price Index Report showed that New York had the highest average cost of insurance premiums at $355 per person, and Arizona had the lowest average insurance cost with $170 per covered person.
See more information on state-by-state premiums for group coverage here.
Sometime a higher premium actually saves money
Be careful basing what a “good” premium cost is off of average costs, since every small business is unique in nature, and your premium costs may be vastly different than another small businesses premium costs.
Some other factors that go into premium cost are the amount of people being covered under the group policy, and the type of health insurance those employees require. In general, high premiums might mean lower costs elsewhere, such as with copayments and out-of-pocket maximums. So in some cases, like when the people covered by the group policy go to the doctor a lot or have several prescriptions, a plan with a high premium might save money in the end, since office visits and copayments are probably lower.
Comparing group insurance to the average insurance cost for individuals
Coverage under a small group health insurance plan was 11% less costly on average than an individual plan according to an eHealth report from December 2016. This might be something to consider as a small business owner when deciding whether or not to insure your employees with a group health insurance plan. Purchasing a group plan can lessen the average cost of health insurance per individual, so your employees could be paying less for a monthly premium if they are part of a group plan with your small business.
Offering a group insurance policy to your employees not only saves them money on premium costs—it can help you too. By offering perks like health insurance, you are making yourself a more desirable employer to work for, and creating a positive work environment by giving your employees benefits that they would otherwise have to purchase themselves.
Choosing the right small business health insurance plan
Now that you know the average cost of insurance for a group, it doesn’t mean that’s how much your small business health insurance premium should be every month. Take the time to consider factors like your location, the health of your employees, the number of employees you have, whether or not they have dependents who will be covered under the plan, and your budget among other things. Depending on those factors, the cost of your monthly premium may be lower or higher than the average premium for most.
Take the time to compare prices and get quotes with the tools eHealth provides for small businesses. eHealth aims to help small businesses find quality group health insurance plans that fit the needs of employees, and fit all budgets. Knowing what other small businesses owners are paying on their premiums is a good place to start, but eHealth can help you find group policies that are tailored to your health-care needs and your budget.