Firm size plays a significant role in medical insurance. There are similar differences with dental insurance. Only 14 percent of very small firms provide dental insurance, while 81 percent of firms with more than 250 employees have the program. In general, firm size plays an even more important role with dental insurance than health insurance. Even in firms with more than 50 employees, the percentage offering the benefit rises ten percent per employee size grouping.
Smaller firms pay more of the cost of medical insurance than larger firms do.
Firms with 49 or fewer employees pay a higher percentage of medical insurance costs than firms with more than 50 employees. For example, firms with less than five employees pay for 83 percent of the benefit costs, while firms with over 250 employees only pay for 74 percent of the cost. Flexible medical spending accounts are much more common in large firms compared to small firms. An employer's number of employees also plays a role in the retirement benefits it offers. As firm size increases, employers are much more likely to provide a retirement benefit program to their employees.