Compared to covered workers in large firms, covered workers in small firms on average contribute a lower percentage of the premium for single coverage (16% vs. 19%) and a higher percentage of the premium for family coverage than workers in large firms (40% vs. 26%).
So how do the big companies deal with rising costs?
Health benefit offerings differ significantly by firm size; only 47% of firms with 3 to 9 workers offer coverage, while virtually all firms with 1,000 or more workers offer coverage.
Large companies work with economies of scale. The more employees they have allows them a stronger negotiation point with major healthcare providers, driving down overall costs and giving access to richer medical plans. This in turn allows them to attract top talent and retain the best and brightest.
Is there a way for my company to lower our medical insurance costs?
Yes. Partnership with a Professional Employer Organization (PEO) like Questco can give your company access to better plans at more affordable rates. Questco relationships enable your employees to join a large group medical plan with thousands of participants and a nationwide network. This unique structure provides access to major benefit offerings at a fraction of the cost, allowing you to both contain costs and offer more compelling benefits packages. This better enables your organization to attract and retain top talent, which brings you closer to your business goals. Questco also provides benefits administration services, which include valuable interactions with your team to navigate the details of accessing care. This frees up precious time and enables a better workplace experience for your people. PEO services can provide a rare opportunity to pay less, yet receive more.