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Zenefits Releases Benchmark Report on SMB Benefits in United StatesZenefits, the leading all-in-one HR solution for small and medium businesses, today released Zenefits Small Business Benefits Benchmark Report, a snapshot of the U.S. small business benefit landscape. Based on aggregate data from more than 8,000 Zenefits customers, the report examines how plan types, contributions, premiums, deductibles, copays and out-of-pocket costs differ across regions. The study is intended to help businesses make more informed decisions by providing insights into the choices of similar companies within the same region. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170314005547/en/ 
(Graphic: Business Wire) "Employee benefits are a significant investment for any business and can impact a company's ability to recruit and maintain the best talent. Yet, it can be difficult to navigate the complex options and provide a benefits package that is both good for employees, as well as the business. Now business leaders are facing increasing uncertainty - between the new administration, proposed changes to the Affordable Care Act (ACA), and changing state regulations. We hope the findings in our first benchmark report can help business owners make better decisions as they navigate the complexity of employee benefits," said Jay Fulcher, CEO of Zenefits. Highlights from the report include: Employers Contribute Nearly 25% More than Required to Monthly Premiums While there is some diversity in the number of healthcare plans offered based on company size (larger companies typically have more offerings), small businesses consistently contribute more than required to employer-sponsored health insurance. When deciding what to contribute, small businesses typically consider talent acquisition and retention, pre-tax considerations, and benefits packages.
PPOs Dominate All U.S. Regions Despite Higher Costs PPOs (Preferred Provider Organization) remain the most popular plan type for small businesses across the country, accounting for 49% of plans. Many choose PPOs despite the higher cost because they provide more flexibility in provider access, movement of care, network size, and out-of-network coverage. However, there is significant variation based on region: PPOs are more popular in Central states, accounting for 58% of PPO plans, while in the Northeast, PPOs only account for 35% of plans. These variations are perhaps based on lower average population density and/or different network providers: important considerations for small businesses to take into account when adopting a benefits package. Deductibles Increasing, but Out-of-Pocket (OOP) Stabilizing While deductibles are a key indicator when evaluating health care plans, changes in policy, including the ACA cap on out-of-pocket costs, have made OOP expenses a more prominent consideration, especially as deductibles continue to increase. Average deductibles and OOP costs vary significantly by region and generally have an inverse relationship. The Central region has the highest average deductibles, but they also have the lowest OOP limits. In contrast, the West has the lowest average deductibles, but the highest OOP limits. For small businesses, this means location and relationship between deductible and OOP are important indicators for employer-sponsored benefits. Deductibles:
Out-of-Pocket Costs:
Zenefits' Small Business Benefits Benchmark Report is based on aggregate data from more than 8,000 businesses - providing a snapshot of small business benefits in the U.S. To download the full report, visit www.zenefits.com/get/benefits-benchmarking-report/. About Zenefits Zenefits is the leading all-in-one HCM (human capital management) solution for small and medium businesses. Designed as an interconnected ecosystem of apps, Zenefits delivers the most complete HR experience by combining its own powerful apps with dozens of best-of-breed providers on the Zenefits platform. Built on a modern technology stack, Zenefits' platform provides a comprehensive Employee Record tightly integrated with Zenefits' apps like onboarding, payroll, compliance and benefits administration and partner apps like email, expense management, 401(k) and employee engagement. The result is a powerful HCM solution that helps mid-market businesses manage their people, stay compliant and save thousands of hours in lost time. For more information, visit www.zenefits.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170314005547/en/ |
