* Is High or Low Best: Lower is Better
This metric measures average health insurance costs (to the company) paid by the company for each individual working for the company, regardless of their level of coverage under the company's plan. While companies typically strive to offer competitive health insurance benefits to current and potential employees (in order to retain and attract talented individuals), program costs must be benchmarked against those offered by similar companies (and the market, in general) to ensure that the company is not over or under-serving their workforce. In some cases, employers may look to move to another insurance provider who may offer lower rates for large group programs, or can offer a superior network of healthcare providers (and overall coverage) at a similar cost.
The average amount of health insurance expense (premiums paid to health insurers minus any expenses paid by the employees) incurred by the company, for each employee working for the company (regardless of whether or not they are covered under the company's health plan).
Two values are used to calculate this KPI: (1) total health insurance costs (premiums, setup fees, etc.) paid by the company, and (2) the total number of employees working for the company. Count employees who are covered, as well as employees who are not covered by the company’s health plan program in the denominator for this calculation. When calculating this value for a calendar year, the average number of employees during that time period may be used in the denominator for this calculation (i.e., the number of employees at start of period, plus the number at the end of the period, divided by 2). Count an employee with multiple riders (spouse, children, etc.) on their policy as a single employee in the denominator for this calculation. Subtract any premiums paid for by employees (i.e., premiums deducted from their pay) from the numerator for this calculation.
(Total Health Insurance Paid by Company - Employee Contribution to Health Insurance) / Total Number of Employees
The total amount of employee benefits administration-related expense incurred by the company over a certain period of time, divided by the total number of company-wide employees. Benefits ad...
KPI Type : Cost
Formula : Total Benefits Administration Expense / Total Number of Employees
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