Small employers are faring better than average when it comes to containing costs within their health insurance plans, but are also asking employees to shoulder more of the expenses, according to a new United Benefit Advisors’ report, “Small Businesses Keeping Pace with Nationwide Health Trends.

Based on the most recent UBA Health Plan Survey, the report finds employees across all plan types pay an average of $3,378 toward annual health insurance benefits, with their employer picking up the rest of the total cost of $9,727, according to the survey. Among employers with less than 100 workers, employees pay $3,557, with their employer picking up the balance of $9,474 — only a 5.3 percent difference compared with the overall numbers.

However, small businesses are passing nearly 6.6 percent more of the costs for single coverage and nearly 10 percent more of the costs of family coverage on to employees. And that number increases to 17.8 percent more and over 50 percent more, respectively, when small employers are compared to their largest counterparts.

“While employers with 500 to 1,000 or more employees may indeed offer better coverage — lower copays, deductibles, in-network out-of-pocket maximums, and monthly premiums — small employers have a lot to offer employees when it comes to wages, purpose, flexibility, et cetera,” says USB president Peter Weber, UBA. “Small employers would do well to benchmark their plans against their same-size peers and communicate how competitive their plans are relative to average national costs, deductibles, copays, and more.”

Small employers with 25 to 49 workers cut a better deal: the average cost per employee for this group is only $9,165, compared to the $9,727 average annual cost per employee for all plans is $9,727.

"Keep in mind that relief such as grandmothering and the PACE Act helped many of these small groups stay in pre-ACA plans at better rates, unlike their larger counterparts,” says Weber. “Generally speaking, however, small businesses are not cutting corners with their coverage. Copays, deductibles, and HSA funding — when offered — are generally in line with average employers.”

The survey also found that small businesses, like other average employers, are primarily offering preferred provider organization plans, though in some cases they are migrating more rapidly to health maintenance organizations and consumer-directed health plans.

Instant Insights /

How small businesses are keeping pace on health benefits, costs

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