Health insurance costs for smaller company?

Anyone that works with a smaller company 20-40 employee’s have any idea on a rough average cost per employee for medical coverage?

My wife was asked to come up with a salary for a job she interviewed for, and she does not need medical so she was hoping she could use that to her benefit. Just trying to get somewhat of an idea on if this could make much of a difference to the employer and make it easier for them to agree with her offer. Her offer is not outrageous or anything…so no worried there. Just want to be fairly compensated for her abilities/experience. The company is in quick need of her services and she is a perfect fit for the position and already has experience with the main software platform they use (not a common application).

With our company for a Blue Cross/Blue Shield $15 co-pay/$500 deductible/80% in network coverage monthly is $383 for single person or $1,067 for family. This is the actual insurance costs with the company paying a portion based on your length of employment. We are a small business between 35-40 employees. Also keep in mind we are seeing a 10%-11% annual increase in premium each year upon renewal with the company covering the increase the last three years.

Depending on how extensive the coverage, it should be 600-900 for an individual, and 1100-1600 for a family.

It can be anywhere from $500 to $1200 per month depending on if the company pays the full tab or if the employees have to kick in.

The problem with using this as a negotiation tactic is that the company (if they’re smart) will know that even if your wife declines insurance now, she could elect to take it at the next open enrollment period and there would be nothing they could do about without risking a potential discrimination claim.

Like anything in negotiation, she can certainly try it and you never know, somebody may not have thought it through and think that giving her an extra $250 a month in exchange for not taking the insurance is a good deal for the company.

Grouse

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The problem with using this as a negotiation tactic is that the company (if they’re smart) will know that even if your wife declines insurance now, she could elect to take it at the next open enrollment period and there would be nothing they could do about without risking a potential discrimination claim.

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Interesting….never thought about that. Granted, I hope someone would take someone’s word for it if they said they did not need it…but I understand the employers may not be able to afford that risk in today’s society. On the flip side, probably would not look good to your boss if you decided to do this in the future as the next open enrollment.

Thanks guys…this info helps.

I am a computer contractor and when I negotiated for my present position, I was given two numbers based on whether I was having full or partial benefits. It also involved the benefits options as part of the employee classification so that any change would also trigger a salary adjustment associated with the benefits change.

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Anyone that works with a smaller company 20-40 employee’s have any idea on a rough average cost per employee for medical coverage?

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My Health Insurance since 2007 has been just my wife and I, Empty Nesters, kids all have their own.

A couple years (2007-2008) ago I worked for a small 30 employee firm, but they had HIGHER than average useage due to the age pool and 1-employee with Crohns. Boss/Owner asked me one-day about his work, (looking for a way to fire him) and told me the Insurance paid out $180,000 for the whole company, $140,000 for just this guy. Anyway, I said, I didn’t hear that and you cannot tell people that and walked out.

I was laid off a few months later, my COBRA was $990+/- for the 1st 2-months (approx $5.70/hour). (Then in Nov I turned 50 but got the premium notice for December and it went up to $1,530/Month (approx $8.80/hour), over a 50% Increase just because I turned 50 years old.

Knowing the age and useage pool makes a huge difference in what the companies rates might be.

Prior to working there I had been off for a couple months in 2007 and my Cobra was only $670/month or approx $3.90/hour.

My next Job (larger Company 3,500+/- employees) started in Jan 2009, Total Insurance cost was less than $600/month with my share less than $90/month. This equates to approx. $3.40/hour.

This just gives you an idea of varying rates, etc. with different companies. My current company does not offer Health Insurance (Quit 3-years ago prior to me coming here), just says they build that into compensation (which sucks to begin with @ 25% less than my previous job, not including Insurance costs, but better than unemployment). Currently, we are covered by my wife’s employer.

For me, the rates then varied from $3.40 to $8.80/hour, quite a range. The $8.80 was not a high end plan either, which the $3.40/hour was the best plan/most coverage).

For me its just a job until I find a better one.