Summary of the 2023 Employer Health Benefits Annual Survey
November 26, 2023
Summary of the 2023 Employer Health Benefits Annual Survey

Each year, the Kaiser Family Foundation conducts a survey to examine employer-sponsored health benefits trends. This article summarizes the main points of the 2023 Employer Health Benefits Survey.


Health Insurance Premiums

In 2023, the average premiums for employer-sponsored health insurance were $8,435 for single coverage and $23,968 for family coverage. The average single and family premiums increased by 7% over the last year, which was faster than the previous year (2% and 1%, respectively). Premiums for 2023 were expected to increase more in recent years since many 2022 premiums were locked in months before inflation became a significant concern.


Additionally, the Kaiser report notes an increase of 5.2% in workers’ wages and inflation of 5.8%. The average premium for family coverage has risen 22% over the last five years, compared with a 27% increase in workers’ wages and 21% inflation.


Premiums under high deductible health plans with savings options (HDHP/SOs) were still lower than the average premium. HDHP/SOs’ annual premiums for single and family coverages were $7,753 and $22,344, respectively.


Conversely, on average, the premiums for workers enrolled in preferred provider organization (PPO) plans were higher than others. The average PPO premium was $8,906 for single coverage and $25,228 for family coverage in 2023.


Worker Contributions

The average worker contribution toward the premium was 17% for single coverage and 29% for family coverage in 2023, similar to 2022 percentages.


In terms of dollar amounts, workers contributed $1,401 and $6,575 toward their premiums for single coverage and family coverage in 2023, respectively. Once again, these numbers were similar to 2022 figures but greater than five years ago.


Plan Enrollment

Enrollment figures were reasonably similar to last year’s. The following were the most common plan types in 2023:


  • PPOs: 47% of workers covered
  • HDHP/SOs: 29% of workers covered
  • Health maintenance organizations (HMOs): 13% of workers covered
  • Point-of-service (POS) plans: 10% of workers covered
  • Conventional (indemnity) plans: 1% of workers covered


Self-funding

In the past few years, self-funded plans have become more popular. Many large organizations self-fund or pay for some or all health services for their workers directly from their own funds rather than purchase health insurance. In 2023, 65% of covered workers—including 18% at small firms and 83% in large firms—are enrolled in self-funded plans. The percentage of covered workers in self-funded plans in 2023 was similar to 2022.


Employee Cost Sharing

Most workers must pay a share of their health care costs, and the average deductible for single coverage was $1,735 in 2023, similar to last year’s number. The average annual deductible has increased 10% over the past five years and 53% over the past decade. The percentage of covered workers with a general deductible of $2,000 or greater for single coverage has increased by 5% over the last five years.


Beyond deductibles, most workers cover some portion of the costs of their health care services. For example, 63% of covered workers had coinsurance, and 10% had a copay for hospital admissions. The average hospital admission coinsurance rate was 20% in 2023; the average payment amount is $404.


In addition, nearly all workers are covered by a plan with an out-of-pocket maximum (OOPM), but the costs vary considerably. Among covered workers with single coverage, 13% had an OOPM of less than $2,000, and 21% had an OOPM of $6,001 or more.


Availability of Employer-sponsored Coverage

While nearly all large firms (those with 200 or more workers) offer health benefits to at least some workers, small firms (three to 199 workers) are significantly less likely to do so. In 2023, 53% of all firms offered some health benefits, which was similar to last year’s percentage (51%).


Although the vast majority of workers are employed by firms offering health benefits, many aren’t covered by their employers. Some are not eligible to enroll, while others choose not for various reasons. Overall, 79% of workers are eligible for health benefits at firms that offer coverage, and 75% of eligible workers take up the organization’s offer. That works out to be 59% of workers at firms that offer health benefits enrolling in coverage.


Among firms that offer health benefits and firms that do not, 53% of all workers were covered by health plans offered by their employer. This is similar to last year’s percentage.


Health Promotion and Wellness Programs

Many firms have programs that help workers identify health issues and manage chronic conditions. The 2023 Kaiser report highlights the following programs:


  • Health risk assessments—Among organizations offering health benefits, 36% of small firms and 54% of large firms provided workers the opportunity to complete a health risk assessment, similar to last year. Among large firms that offer a health risk assessment, 59% used incentives or penalties to encourage workers to complete the assessment, higher than the percentage (50%) in 2022.


  • Biometric screenings—Similar to last year’s trend, in 2023, workers at 15% of small firms and 42% of large firms were given the opportunity to complete a biometric screening. Among large firms with a biometric screening program, 67% use incentives or penalties to encourage workers to complete the assessment. Although this is a larger share than last year (57%), it is not significantly different.


  • Health and wellness promotion programs—Organizations offer such programs to help employees improve their lifestyles and avoid unhealthy habits. Most employers—62% of small and 80% of large—offered a program in at least one of these areas: smoking cessation, weight management, and behavioral or lifestyle coaching. These figures are similar to those of last year.


  • Disease management programs—Among organizations that offer health benefits, 36% of small firms and 64% of large firms offer disease management programs to improve employee health and reduce enrollees’ costs for certain chronic illnesses. These programs aim to educate workers about their disease and suggest treatment options.


Telemedicine

Large firms are more likely than small firms to cover telemedicine services. In 2023, 91% of large employers with 50 or more workers covered health care services through telemedicine in their largest health plan, similar to last year. While small firms are more likely than large firms to provide telemedicine services only through their health plan, large firms are more likely to provide telemedicine services through a specialized telemedicine provider.


Since the COVID-19 pandemic officially ended, medical services are now generally available in person, and many employees have partially or fully returned to their workplaces. The Kaiser report highlighted how employers with 50 or more enrollees felt about the importance of telemedicine going forward. Overall, 28% of organizations believe telemedicine will be “very important” in providing access to enrollees in the future; another 32% say it’ll be “important.” While 41% of organizations say telemedicine will be “very important” in providing access to behavioral health services in the future, an additional 30% say it will be “important.” Fewer organizations feel that primary and specialty care—27% and 16%, respectively—will be “very important” in providing health care access.


Abortion Services

The U.S. Supreme Court decision in Dobbs v. Jackson, overturning Roe v. Wade, and subsequent state activity to regulate abortion has increased interest in coverage for abortion services in employer plans. In the 2023 survey, 32% of large firms (those with 200 or more workers) offering health benefits said that legally provided abortions are covered in most or all circumstances, and 18% said legally provided abortions are only covered under limited circumstances (e.g., rape, incest, or health or life endangerment of the pregnant enrollee). The majority of employers (40%) answered “Don’t know” to the prompt, perhaps reflecting the complexity of the issue and the changing landscape of state laws.


A small percentage (7%) of large firms offering health benefits provide or plan to provide financial assistance for travel expenses for enrollees who travel out of state to obtain an abortion if they do not have access near their home.


Conclusion

As expected, the average annual premiums for both single and family coverage significantly increased in 2023 as the economy impacts health benefits. Looking ahead, inflation and wages are projected to moderate over the next two years. Employers should begin identifying tools and resources to offset higher premiums and offer robust mental health support.


For more information on benefits offerings, contact us today.

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How the Right Payroll Tech Simplifies W-2s and Tax Filing

April 15, 2025
It’s April 15—Tax Day in the U.S.—and if you’re a business owner or HR professional, chances are W-2s, filings, and compliance have been front and center for weeks (if not months). But here’s the thing: tax season doesn’t have to be stressful. The right payroll and HCM technology can turn what’s traditionally a time-consuming, error-prone scramble into a streamlined, accurate, and surprisingly painless process. From automatically balancing year-to-date totals to generating and distributing W-2s on time, a robust payroll system ensures nothing slips through the cracks. No more cross-checking data across platforms, no more last-minute tax filings, and no more anxiety about penalties or missed deadlines. At Simco, we get it—because we help businesses simplify this process every single day. The Challenges of Traditional Payroll Tax Management If you're still managing payroll taxes manually—or using disconnected software systems—it’s all too easy to fall behind. Some common issues employers face include: Human error : Tax calculations, forms, and deadlines are complex. A small mistake can lead to penalties or costly overpayments. Time-consuming manual work : Without automation, payroll processing can involve endless imports, exports, and reconciling data across multiple platforms. Compliance risk : With ever-changing tax laws at the federal, state, and local levels, staying compliant can become overwhelming without the right tools. How the Right Technology Can Make Tax Season a Breeze Today’s modern payroll and HCM systems are designed to simplify these challenges. Here’s how the right technology can help: 1. Automated Tax Filing and Payments: An integrated payroll system automates tax calculations, deductions, and filings. Forms like W-2s and W-3s are automatically generated, filed, and paid—without manual input. This reduces the risk of late filings, penalties, and missed deadlines, ensuring compliance with the IRS and state tax agencies. 2. Streamlined W-2 Management: W-2s can be a headache to manage—especially if you have complex tax scenarios like multi-state employment. With an automated system, W-2s are generated and distributed electronically, ensuring accuracy even in complex situations. Employees receive the correct form without you having to spend valuable time cross-checking or manually making corrections. 3. Self-Balancing Capabilities: A self-balancing payroll system ensures that your year-to-date totals and tax filings are accurate, eliminating the need for extensive manual reconciliation. By automatically matching figures in real-time, it streamlines year-end reporting, providing peace of mind when the filing deadline approaches. 4. Fewer Third-Party Imports and Exports: With everything integrated into a single platform, you won’t need to rely on third-party software or services for tax filing and reporting. This means fewer opportunities for errors, fewer manual imports and exports, and significant time saved during payroll processing. 5. Automated Adjustments and Updates: Tax laws and rates change frequently. With the right payroll system, you won’t have to worry about manually updating deductions or tax rates. The system automatically applies changes—whether it’s an update to federal tax rates or state-specific deductions—so your payroll is always up to date. 6. Expert Support When You Need It: Even with the best technology, tax season can present complex challenges. That’s why it’s important to have access to expert support. Whether you need help with multi-jurisdiction filings, audit preparation, or just have questions about tax return procedures, our team of HCM Specialists at Simco is here to provide guidance and ensure that you’re compliant every step of the way. Why Choose Simco for Smarter Payroll and Tax Management? As an isolved Network Partner, we offer a fully integrated payroll and tax management system that is built to handle the complexities of tax season—and beyond. We provide businesses with the tools they need to automate tax filings, ensure compliance, and streamline payroll processing. Here's how we do it: All-in-One Payroll & Tax Platform : From payroll processing to tax deposits and W-2 filings, everything happens within one system, reducing manual work and the risk of errors. Automatic Filing & Timely Accuracy : Federal, state, and local tax filings are completed automatically and on time, ensuring your employees receive only one accurate W-2 form—even in multi-state tax scenarios. Error-Free Tax Reporting : Our self-balancing ledger helps reduce errors and simplifies reconciliation, making tax reporting easier and faster. Expert Support : Whether it’s navigating multi-jurisdictional filings, preparing for an audit, or handling amendments, our team is always available to offer expert advice and assistance. Cost-Effective Solutions : We offer top-tier tech at competitive pricing, often matching or beating our competitors (learn about the Simco Price Match Commitment here !), while providing the personalized service that large providers can’t. Let’s Make Next Tax Season Easier, Starting Today It’s never too early to think about next year. With our unified payroll/HCM solution at Simco, you can save time, reduce stress, and ensure compliance all year long. It’s time to upgrade your payroll system to one that works smarter, not harder. Let’s chat and explore how we can help streamline your payroll and tax processes, so you can focus on growing your business with confidence.

SMART Goals: The Key to Crushing Your Business Objectives

April 4, 2025
New month, fresh start! But let’s be real—how many times have you set a goal, only to watch it fizzle out? Maybe it was too vague, too ambitious, or just got buried under the daily chaos. If you’re tired of spinning your wheels, it’s time to take a smarter approach—literally. Enter SMART goals —your secret weapon for turning ideas into reality. Whether you’re looking to improve employee retention, streamline operations, or boost revenue, this framework ensures your goals don’t just sound good but actually get done . The SMART Formula for Success Specific – Get laser-focused. A goal like “improve employee morale” is too broad. Instead, ask yourself: What does success look like? Are you reducing turnover? Increasing engagement scores? Define it. Measurable – Numbers don’t lie. How will you know if you’ve succeeded? Instead of saying, “increase engagement,” set a target: “Boost employee engagement scores by 5%.” Tracking progress keeps you accountable. Achievable – Dream big, but stay realistic. Sure, we’d all love zero employee turnover, but is it feasible? Probably not. However, reducing turnover by 15%? Now that’s a goal within reach. Relevant – Align with the bigger picture. Every goal should move your business forward. If your focus is employee retention, then prioritizing revenue growth over culture initiatives might not be the best move. Keep your goals aligned. Time-Bound – Set the clock. “Improve retention” is a nice thought, but without a deadline, it’s just wishful thinking. Instead, say, “Increase retention by 5% by the end of the year.” A firm timeline drives action. Track It or Lose It A goal without tracking is just a wish. You wouldn’t set out on a road trip without checking the map, so why leave your goals to chance? Regular progress check-ins—whether through weekly reports, monthly reviews, or real-time dashboards—help keep you on course. Tracking not only highlights wins but also flags roadblocks early, giving you the chance to pivot before it’s too late. And here’s the key: don’t just track for the sake of tracking—use the data to refine your approach. For example, imagine you're aiming to improve employee engagement scores by 5% by the end of the year. After tracking progress for a few months, you notice that engagement is lagging in one department. Instead of waiting until the year-end review, you dig deeper. Perhaps it’s due to lack of recognition or unclear communication—adjustments are made, and suddenly, the department starts seeing improvement. Tracking allows you to course-correct in real-time, ensuring that you hit your target rather than missing the mark. The most successful businesses aren’t the ones that never face setbacks—they’re the ones that track, adapt, and push forward. How We Use SMART Goals to Stay Ahead At Simco, we don’t just talk about SMART goals—we live by them. Our team follows the Entrepreneurial Operating System (EOS) , which helps us stay focused, aligned, and results-driven. A big part of EOS is setting Rocks —key priorities for the next 90 days. And guess what? Every Rock follows the SMART framework: Clearly defined objectives Measurable success markers Challenging yet attainable goals Aligned with our company vision Locked in with a firm 90-day deadline This system keeps us accountable, making sure we’re always moving the needle in the right direction. Your Turn: Take Action Today No more “someday” goals— today is the day to take control. Whether you’re aiming to increase revenue, refine your processes, or boost employee satisfaction, the SMART approach ensures you’re not just busy—you’re making real progress. Need help aligning your HR, payroll, or benefits strategy with your business goals? Simco is here to help . Let’s make this your most productive quarter yet!

The Do’s and Don’ts of Office Pranks

April 1, 2025
April Fools' Day is often the perfect opportunity for some lighthearted fun at the office. Whether it's a harmless prank, a funny email, or a playful desk setup, these moments of levity can help break up the monotony of the workday and bring smiles to your team. However, as many HR professionals know, it’s essential to strike a balance between fun and professionalism. While the intention behind pranks is typically harmless, they can sometimes cross boundaries and lead to uncomfortable situations, or worse, legal risks. Recently, an example came to light where one employee thought it would be funny to place a suggestive image on a coworker's desk. The issue arose when another employee saw the image and was offended, leading to a formal complaint. This scenario highlights the importance of knowing where to draw the line between lighthearted fun and inappropriate behavior. A Fine Line: When Fun Turns into Harassment Even if a prank isn't directly targeted at the offended person, it can still create a hostile work environment, especially if it makes someone uncomfortable. As an employer, it's crucial to ensure that your workplace remains respectful and free from harassment. If a prank results in a complaint, it's essential to follow your company's policies to investigate and address the situation. Proper documentation of your investigation and the actions taken is vital to demonstrate that you've fulfilled your obligations as an employer and to protect the organization in case of any future disputes. Setting Clear Expectations To avoid similar issues in the future, it's a good idea to review and clarify your company's stance on pranks and personal conduct in the workplace. Setting expectations starts with having a clear written policy that outlines what is and isn’t acceptable behavior, especially regarding pranks. Consider creating a set of guidelines that all employees can refer to, and be sure these expectations are communicated effectively to everyone. Here are a few tips to guide you: Establish a Formal Policy: Clearly define the boundaries of acceptable humor in your workplace. The policy should cover both pranks and jokes, specifying that while fun is encouraged, it should not come at the expense of respect, inclusion, or professionalism. Communicate Expectations Clearly: Include these guidelines in your employee handbooks or conduct policies, and ensure they’re reviewed during onboarding. Hold periodic team meetings to remind everyone about the importance of maintaining a respectful environment and reinforcing your stance on pranks. Set the Tone from Leadership: Managers and leaders should set an example when it comes to humor in the workplace. They should demonstrate the type of jokes or pranks that are acceptable and ensure their actions align with company policy. Employees are more likely to follow suit when they see their leaders taking these matters seriously. Encourage Open Communication: Foster a culture where employees feel comfortable speaking up if they feel a joke or prank crosses the line. Providing a safe outlet to discuss concerns without fear of retribution will help create an open, transparent environment where everyone feels heard. Categories of Pranks and Jokes That Cross the Line While there’s no one-size-fits-all approach, there are certain categories of pranks and jokes that should generally be off limits in the workplace . These pranks have the potential to cause harm, create discomfort, or violate company policies. By categorizing these behaviors, you can help employees better understand where to draw the line. Sexual or Gender-Based Humor : Avoid pranks with suggestive content, gestures, or language that can create a hostile work environment or be considered harassment. Discriminatory Jokes : Refrain from jokes targeting someone's race, religion, gender, sexual orientation, or other protected characteristics, as they can be harmful and illegal.  Invasive Pranks : Don’t tamper with personal belongings or invade others' personal space, as this undermines comfort and respect. Work Disruptions : Pranks that interfere with productivity or damage equipment should be avoided, as they can hurt overall efficiency. Aggressive or Harmful Pranks : Any prank that causes physical harm or emotional distress, including pranks involving physical touch or intimidation, is off-limits. Creating a Culture of Respect and Fun The key to managing pranks and other fun activities is to cultivate a workplace culture where employees feel comfortable, respected, and empowered. Rather than banning all pranks, focus on fostering a professional environment where employees understand the line between harmless fun and actions that could potentially harm or offend others. Encourage employees to engage in team-building activities and moments of levity that unite them in a positive and inclusive way, without crossing into territory that could lead to complaints or workplace tensions. As April Fools' Day passes, it’s important to remember that while pranks can provide a bit of comic relief, they should never come at the expense of respect or professionalism. By setting clear boundaries, encouraging open communication, and ensuring all employees understand your policies, you can create a workplace where everyone feels comfortable—whether they're laughing at a harmless joke or focusing on their next big project. Have fun in the workplace—but always ensure that a good laugh never comes at the expense of respect or professionalism!

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