• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
New City Logo

New City Insurance

Employee Benefits & HR Consulting Firm

  • Benefits Consulting
    • 401k & Retirement
    • Employee Benefits Benchmarking
    • Executive Benefits
    • Group Health Insurance
  • HR Compliance & Technology
    • Benefits Administration Technology
    • Employee Benefits Compliance
    • HR & Payroll Integration
    • HR Support
  • Our Process
  • Industries
    • Aerospace Industry
    • Biotech Industry
    • Engineering Industry
    • IT Industry
    • Manufacturing Industry
    • Gas & Oil Industry
  • Request Consultation
  • Industries
    • Aerospace Industry
    • Biotech Industry
    • Engineering Industry
    • IT Industry
    • Manufacturing Industry
    • Gas & Oil Industry
  • About
  • Blog
  • Contact
  • Client Portal
  • 888.210.2759
  • Request Consultation

Business Benefits Benchmarking Data from 2020: Trends Revealed

June 21, 2021, by New City Insurance

men working in office finding out benchmarking analysis width=Each year, new trends emerge that give businesses unique insights into benefits and what trends have been most prevalent. Using benchmarking analysis to look at past trends and the current landscape can help organizations plan a strategic course towards a more successful business.

How Benchmarking Analysis Can Help?

Trends in business benefits benchmarking span many areas, such as medical premiums and contributions, voluntary benefits trends, health plans offered and growth. These findings may help business owners make better decisions about their benefits and can help drive employee engagement.

Health Plan Availability

According to a 2021 SMB Benefits and Employee Insights Report by Ease, the number of health plans offered per employee has decreased approximately 3 percent. The gradual decrease may indicate the need to contain costs. By reducing the number of health plans available to employees, businesses can offer more affordable health care plans to employees, such as high deductible health plans (HDHPs). The overall cost of group health plans is highly dependent on company size. Research shows that businesses with more employees are offered more health plan options than those with fewer employees. Bigger corporations may also have the benefit of risk pooling which makes group insurance a cost-effective option.

Medical Premium Increases

above view of busy office looking at benchmarking analysisA rise in medical premiums has been widespread since the global health crisis of 2020. Both individuals and families have encountered increased medical premiums, a trend that continues to be a problem in the insurance industry. Research found an increase in medical premiums of almost 6 percent for individuals and 3.74 percent for families. However, the overall rate of inflation in 2020 was minimal. Healthcare prices increased about 1.8 percent in 2020, and hospital services increased about 3 percent. The cost for physician services also experienced a slight increase of just 1.7 percent.

Unchanged Contributions

Even through the pandemic, many employers and employees continued to make contributions to medical premiums. The percent that employers cover only made a minor decline, falling from 74.24 percent in 2019 to 73.97 percent in 2020. Businesses with between 101 and 250 active employees saw the highest contribution, while companies with between 1 and 10 active employees saw the smallest contribution. Employer contributions to family medical premiums have remained much unchanged over the last year. Although contributions have not been rising, the overall costs of family medical premiums are on the rise.

Voluntary Benefits

The COVID-19 pandemic had a massive influence on the unemployment rate in the U.S. in the past year. By the end of 2019, the U.S. unemployment rate was 3.5 percent, the lowest it has been since 1969. In 2020, the unemployment rate had reached 6.9 percent by October. With a smaller talent pool available, many companies were scrambling to attract top employees. Offering voluntary benefits was an effective way to help breach the gaps found in many employee benefits, such as medical plans. Like trends seen in health plan offerings, the larger the business, the more voluntary benefits are generally offered to employees.

Leave Policies

Changes in 2020 also had a significant impact on paid and unpaid leave policies in the workplace. State legislative changes have directly affected how businesses administer leave plans. Employer-paid leave policies are now being offset by state paid family leave benefits when applicable. Many employees are also turning to leave administration vendors to acquire time off without fear of losing their job. Businesses now have the responsibility to review their internal leave processes to ensure that they are up-to-date and meet the employees’ expectations.

Pertinent Benchmark Averages

office with lot people looking at benchmarking analysisBelow are some of the benchmarking analysis highlighted stats from the pooled benefits data of over 75,000 companies across different industries in 2020:

  • Medical premiums rose about 6% on average
    • Large groups (over 101 employees) were the most affected, with 7.67% increase for employees and 8.83% for families
    • Average Premium (101-250 Employees):
    • Employee: $554; Family: $1524

    • Average Premium (1-100 Employees):
    • Employee: $527; Family: $1380

    • Employees prefer PPOs, selecting PPO plans 55% of the time
    • Employer Monthly Contribution Averages:
      • Medical (101-250 Employees) per:
      • Employee: $519, or 79.53%
        Family: $1104, or 72.44%

      • Medical (1-100 Employees) per:
      • Employee: $383, or 72.88%
        Family: $809, or 58.62%

      • Dental: $27.28
      • Vision: $4.30
      • Life: $7.74
      • Short Term Disability: $10.21
      • Long Term Disability: $14.12
    • Average Number of Medical Plans Offered: 2.69
    • Average Voluntary Benefits Plans Offered: 3.59

    Speak With An Expert Today About Benchmarking Analysis

    Businesses and their employees experienced countless changes to business benefits in 2020, mainly due to the pandemic. With the end of the pandemic nearing, benefits benchmarking analysis helps businesses understand the importance of gaining a competitive edge in a limited job market. Bulking up an employee benefits package is one of the best ways to attract new talent. Businesses can also learn a lot from reviewing other benchmarking data from 2020, including how it has affected medical insurance and small business growth as a whole. For more information about business benefits benchmarking analysis from 2020 or to speak with an insurance professional, reach out to the insurance experts at New City Insurance.

Have Additional Questions?
Call Today: 888.210.2759
Request a Consultation

Filed Under: Benchmarking,  Benefits

Primary Sidebar

Have A Question?

Ask a question or request a consultation, and we will respond to you in a timely manner.
  • This field is for validation purposes and should be left unchanged.

Footer

New City Logo
Corporate Headquarters 600 B St STE 300, San Diego, CA 92101
888.210.2759
info@newcityinsurance.com

Insurance Products

  • Commercial Insurance
  • Pay-As-You-Go Workers Comp
  • Group Health Insurance
  • Workers Comp
  • Self Funding
  • Minimum Essential Coverage

Benefits Consulting

  • 401k & Retirement
  • Employee Benefits Benchmarking
  • Executive Benefits
  • Group Health Insurance
  • PEOs
  • Wellness Plans

HR & Technology

  • Benefits Technology
  • Benefits Compliance
  • Growth Strategy
  • HR & Payroll Integration
  • HR Support

Industries

  • Aerospace
  • Biotech
  • Engineering
  • IT
  • Manufacturing
  • Gas & Oil
Google Rating
5.0
New City Insurance
New City Insurance
5.0
Carol Zhang
Carol Zhang
04:29 06 Mar 22
As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.
Claudia Villalobos
Claudia Villalobos
20:14 03 Mar 22
New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!
Philippe Salas
Philippe Salas
17:02 22 Feb 22
I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.
Jennifer Polito
Jennifer Polito
17:15 09 Feb 22
Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.
Rocky Salas
Rocky Salas
23:46 07 Jan 22
So friendly, I hope to speak to him again in all my future insurance needs.
Rocky Salas
Rocky Salas
23:38 07 Jan 22
So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.
Jose Brena
Jose Brena
13:20 06 Jan 22
Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.
Anastasia Beaverhousen
Anastasia Beaverhousen
17:05 28 Dec 21
Signing up for insurance was quick and easy. Felicity Sundsboe
SFCC
SFCC
22:08 29 Nov 21
Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.
Kevin Luby
Kevin Luby
19:13 22 Oct 21
Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.
Theresa Ruybol
Theresa Ruybol
19:30 01 Jul 21
Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you
Andrea Ordendorff
Andrea Ordendorff
21:06 07 May 21
I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.
T W
T W
22:32 30 Aug 20
I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!
Mary Jane Deyette
Mary Jane Deyette
00:57 11 May 20
Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff
Alma Ortiz
Alma Ortiz
22:25 23 Feb 20
Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!
jessica kavanagh
jessica kavanagh
19:53 13 Feb 20
Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.
Tricia DeYoung
Tricia DeYoung
19:49 13 Feb 20
I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.
B Bayer
B Bayer
17:43 24 Sep 19
NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!
Jessica Lehr
Jessica Lehr
03:36 07 Jun 19
Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.
Mike McClay
Mike McClay
19:36 03 May 19
My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.
Next Reviews Write a review
powered by Google
Privacy Policy | Terms Of Use