What the numbers say 1. For small employers (fewer than 50 staff), average employer-paid premiums: single coverage ≈ $528/month (~$6,300/year), family coverage ≈ $1,232/month (~$14,800/year) as of March 2024. 2. Many small businesses aim to pay at least 50% of the premium for employee only coverage to be competitive and qualify for tax credits. 3. Employers cover a large share: the average employer in 2023 covered around 83% of self-only and 73% of family premiums. 4. Premiums are rising: health insurance is becoming a more material share of compensation for smaller firms. What this means for your trades business Since you’re in contracting/trades, you likely have: a mix of field workers, some seasonal or variable hours, intense competition for labor, high turnover risk, and a need to keep overhead under control. Here’s how to apply the numbers: - If you were to offer no health insurance and instead just raise wages to “cover what health insurance might cost,” you might need to raise wages by ~$500-600/month (for single coverage) or ~$1,200+/month (for family coverage) just to approximate what many employers pay in premiums. - But that wage raise is taxed differently (you’ll pay more payroll taxes, workers compensation base goes up, you add burden) and you lose some of the “benefit value” in the eyes of employees (insurance is perceived value). - If you offer health insurance (or a solid subsidy toward it): That becomes a differentiator in the trades — many contractors don’t. You can use it to recruit and retain. But you must budget it, pick a plan that aligns with your workforce (age, health status, turnover) and build for the long run.