[BamBamm5144]

Without getting into any politics about the whole healthcare law and what not I have a few questions.

I decided this year that it is time I officially offer my employees healthcare coverage. Beforehand, I have just paid a portion of what their monthly bill is. In my industry, offering health care coverage is what gets you the employees that you want to represent your company.

So my questions, is it best for a company that is small as mine (anywhere from 5-10 employees) to go through the ACA? I am running some numbers and it looks like for roughly $1000 a month for 5 employees I can get a basic bare bones plan, better ones are running a few thousand a month. It also appears that there are tax credits for companies that provide insurance with less than 25 employees if their average salary is under 50k per employee.

Next question is what is a reasonable amount to expect the employee to pay for their own healthcare? I know back in the day it was normally 100% but of course that has changed. Is it expected to be 25%, 50%, 75%?

That's about the only two questions I have for now so any input from those that really know about this would be helpful.

Please, let's avoid taking this thread to the basement!

 

[griz]

Maybe as a retention incentive offer a sliding scale for what the employee burden is.

You are correct that now days benefits/incentives is what attracts and retains top hands.

 

[BamBamm5144]

Maybe as a retention incentive offer a sliding scale for what the employee burden is. You are correct that now days benefits/incentives is what attracts and retains top hands.

Griz, please elaborate on "retention incentive on a sliding scale"

 

[Moxley-Kidwell]

I would also find a broker in your area to run some numbers. You may be able to get a little better plan if you choose one with higher deductibles. We are using a higher deductible plan that is also a saving account (hsa). We found we could offer a better plan with higher deductibles and a hsa for the same $ as a ordinary plan. We switched and I figured out a way to take the same $ from employees checks to cover their portion of the cost and fund the savings account to the full amount as the deductible in a year.

I think between 20-40% of the cost is reasonable to expect from employees.

A good broker will be able to show you a ton of options, just make sure they are plans that comply with the new law or you will have to change it soon.

 

[griz]

Griz, please elaborate on "retention incentive on a sliding scale"

The longer a quality guy stays with you the more of the cost you pick up. You keep a quality guy you know & trust and he gets a lower cost on his share of the premium.

How much all this ends up being is up to you and negotiable with the employee. Your top lead guy(s) get a better break than a new hand.

 

[kbelz67]

Griz, according to the law you can no longer have a sliding scale. Whatever you offer to one you have to offer to all no matter if they are 10 years with you or 10 days. My employer was paying about 70% of mine up until the end of last year and he had to stop because he would have had to do the same for the office personnel who had less then a year in.

He restructured it so that he "pays" me more then takes it right back out as though I'm paying more for my ins. I'm losing out because now I get taxed on it.

 

[griz]

Why can't you enter an employment contract with an employee and as part of the contract $xx gets put to benefits?

See that all the time.

 

[Pearce Services]

The longer a quality guy stays with you the more of the cost you pick up.

Can you do that legally? I was told that you have to offer the same deal to all employees.

That sounds like a great idea

 

[griz]

If everyone gets offered the same how/why do guys get different wages?

 

[kbelz67]

From what I know it does not matter length of employment or wage compensation, with insurance you cannot play "favorites" . One for all. Now that's not to say , like me, it can't be worked around but on paper everyone gets the same insurance deal.

 

[JBM]

Oh so Congress gets the same health care as the guy picking up the trash at national parks. Good to know ,llol.

 

[KAP]

Bam, you're going to have to run the numbers to see if the tax credit works for you,. but realize you are still putting out money to just get a percentage back.

IMHO, you are better off giving your employees the amount you would spend on insurance in increased pay, and let them decide what is right for them...

They may decide to bank the money or they may decide to get insurance.

Additionally, since you are not providing them insurance, I don't see why you couldn't base how much you give them on a sliding scale as it is now income, not benefits...

You don't need to be in the mix anymore...

My understanding is if you want the tax credit, you have to pay at least 50%.... If you still want to do so, here is the info...

http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers

 

[Moxley-Kidwell]

My understanding is if you want the tax credit, you have to pay at least 50%.... If you still want to do so, here is the info...

http://www.irs.gov/uac/Small-Business-Health-Care-Tax-Credit-for-Small-Employers[/QUOTE]

Pretty sure you are correct. I also was going to try for a credit, but it wasn't worth it to have to pay that much. There are a bunch of worksheets you need to work through to see if you can get the credit.

 

[Golden view]

Sorry this isn't helpful to the discussion, but I would have to say I'm surprised at the cost of this. For 5 employees, it seems like a low cost to provide a desirable benefit.

 

[Ohteah]

I think my boss covers 100% of my premium, I've been with 10 yrs or so. He doesn't cover the premium for my family. Cost me about 350 a 2 week check. If he payed towards my family , he would have to pay the same for everyones.

Have medical, dental and vision. 30 co pays its ok ins , not the greatest, but I'm sure the premium over a grand a month for me and my family.

We have a broker, in 10 yrs seems liked we've switched companies 3 or 4 times, cause rate hikes can be like 40% sometimes.

As far as the tax credit goes , we talked about it at some point and he basically said it didn't really pan out to much. It was something along the lines of the cost to pay the accountant and his personal time, didn't really justify the return. It sounded like a crap load of paperwork.

We also have some young single guys. who have their own, because it was cheaper than the co. policy. Good Luck health ins premiums suck, but we do have a number of older guys who have told me they stay for the benefits. It's nice to offer things to your employees, makes us feel like actual human beings.

 

[Jaws]

My brother, dad and I are considering offering it. Oil field is booming down here. Have to offer good money and some benefits to keep top hands.

Meet with the insurance company we get our WC through soon to discuss our options. No other contractors here are offering WC, much less HC.Should be a big plus. Problem is most of our hands get their insurance throughtheir wife's. We will see.

 

[Stephen H]

congrats Bam.
In my opinion you are doing the right thing AND- it will allow you to hire a caliber of people who more than make up for the added cost.

the difference in employees can be like night and day.

BTW- we pay a 25%/75% split and we cover the family as well- because THAT is the caliber of people we want to work with.- Guys who get married,stay married,raise families,buy houses, coach T-Ball/Basketball, send their kids to good schools etc...............

It makes a HUGE difference in the people you can hire.

Best wishes,
Stephen

 

[D.E.P.S.]

Without getting into any politics about the whole healthcare law and what not I have a few questions.

I decided this year that it is time I officially offer my employees healthcare coverage. Beforehand, I have just paid a portion of what their monthly bill is. In my industry, offering health care coverage is what gets you the employees that you want to represent your company.

So my questions, is it best for a company that is small as mine (anywhere from 5-10 employees) to go through the ACA? I am running some numbers and it looks like for roughly $1000 a month for 5 employees I can get a basic bare bones plan, better ones are running a few thousand a month. It also appears that there are tax credits for companies that provide insurance with less than 25 employees if their average salary is under 50k per employee.

Next question is what is a reasonable amount to expect the employee to pay for their own healthcare? I know back in the day it was normally 100% but of course that has changed. Is it expected to be 25%, 50%, 75%?

That's about the only two questions I have for now so any input from those that really know about this would be helpful.

Please, let's avoid taking this thread to the basement!

How can you be expected to do what is right when the ACA law has been changed 29 times with more changes to come. Six months from now you might be looking at a whole new picture. Plans that are here today will be gone tomorrow...(per say). I really feel for guys like you who are trying to keep good workers.

 

[SSC]

Sorry this isn't helpful to the discussion, but I would have to say I'm surprised at the cost of this. For 5 employees, it seems like a low cost to provide a desirable benefit.

My wife and I are paying about $400each through her employer. A quick search through my business had us at $900+. If you could get 5 guys for a $1k thats great share the info