Medical Coverage Still a Benefits Staple for Small Employers; Four out of Five Businesses Still Offer 401K Match
RICHMOND, Va., Sept. 15 /PRNewswire-FirstCall/ -- In contrast to reports
that small businesses are discontinuing or paring medical benefits options for
employees, small and midsize employers remain strong believers in employee
benefits and anticipate maintaining or expanding their offerings in the next
two years, according to joint research by Employee Benefit News magazine and
Genworth Financial (NYSE: GNW - ).
The 2004 EBN-Genworth "Small to Midsize Employer Benefit Survey" is the
first comprehensive study of the attitudes, plans and purchasing practices of
small to mid-sized businesses in America as they relate to employee benefits.
The survey polled more than 500 benefits decision makers at firms with 10 to
500 employees who visited http://BenefitNews.com between April and July this
The all-new research aimed at America's small businesses found that 99% of
the employers surveyed offer a medical plan to their employees. Twelve
percent of the firms surveyed actually give employees a choice of more than
one medical insurance company as their provider.
"The study delivered a surprising burst of good news within a
still-uncertain economic landscape," said Rone Baldwin, president of Genworth
Financial's Employee Benefits Group. "Employers continue to be committed to
offering a wide range of benefits to employees. However, employers are
looking for ways to more closely manage benefit costs -- without discontinuing
quality benefits packages for valued employees."
Other key findings of the EBN-Genworth Survey Include:
- The average premium percentage small business employees must bear for
medical coverage is 19% for single coverage, and 39% for family
coverage. Ninety-nine percent of small and midsized businesses offer
medical coverage to employees.
- Some benefits costs are being shifted to small business employees --
over half of the firms surveyed are now offering some form of
"voluntary benefits" (or benefits fully paid by employees) or are "very
interested " in them for the future.
- Eighty-three percent of small businesses offer a company match toward
401K retirement plans.
- More than 80% of businesses surveyed offer life, disability and
"The fact that life, disability and retirement benefits remain widely
offered by small to mid-sized businesses is further evidence of an
impressively strong commitment to offer a broad spectrum of benefits-in spite
of other competitive business pressures and generally rising benefits costs,"
For additional coverage of the survey findings, visit EBN's Web site,
To view a detailed summary of the survey's key findings, visit
About Genworth Financial
Genworth Financial is a leading insurance holding company, serving the
lifestyle protection, retirement income, investment and mortgage insurance
needs of more than 15 million customers with operations in 20 countries,
including the U.S., Canada, Australia, the U.K. and more than a dozen European
countries. For more information, visit http://www.genworth.com.
About Employee Benefit News
Employee Benefit News, the leading magazine in its field, is mailed 15
times annually to 60,000 senior executives who are responsible for employee
benefit purchasing decisions in their organizations. It is part of Thomson
Media's Employee Benefits Group, which includes Employee Benefit News Canada
and Employee Benefit Adviser, as well as the electronic newsletters Connect
and Adviser. For information, visit http://www.benefitnews.com.