Smart Benefits: Premiums for Employer-Sponsored Coverage Continue to Rise
Monday, October 19, 2020
Earlier this month, Kaiser Family Foundation released the results of its 2020 Employer Health Benefits Survey. The biggest takeaway is that annual premiums for employer-sponsored family health coverage reached $21,342, up 4% from last year.
With insight like this into trends in health coverage, the annual report can be a valuable source for companies looking for data to support their health and benefits strategy. Looking to benchmark your approach? Consider these other key survey findings.
- 56% of employers offer health benefits, with about half (53%) of firms with fewer than 50 workers and nearly all (99%) firms with at least 200 or more workers offering coverage.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST- PPOs are the most common plan type, enrolling 47% of covered workers in 2020 while thirty-one percent of covered workers are enrolled in a high-deductible plan with a savings option (HDHP/SO), the second most popular option.
- Most covered workers make a contribution toward the cost of the premium for their coverage. On average, covered workers contribute 17% of the premium for single coverage and 27% for family coverage, with the average annual dollar amounts contributed $1,243 for single coverage and $5,588 for family coverage.
- 83% of covered workers have a deductible in their plan, with the average single deductible $1,644 for workers who have one.
- Virtually all covered workers are in plans with a limit on in-network cost sharing (called an out-of-pocket maximum) for single coverage. Among workers in plans with an out-of-pocket maximum for single coverage, 11% have an out-of-pocket maximum of less than $2,000, while 18% have an out-of-pocket maximum of $6,000 or more.
- 53% of small firms and 81% of large firms offer a program in at least one of these areas: smoking cessation, weight management, and behavioral or lifestyle coaching.
- 85% of firms with 50 or more workers offering health benefits cover the provision of health care services through telemedicine in their largest health plan.
Sam Slade is Managing Director, Employee Benefits, at The Hilb Group of New England, where he delivers consulting and brokerage services to local employers. He has extensive experience in all aspects of employee benefits, including underwriting, plan design, communications, compliance, and analytics, with a particular focus on alternative funding and self-insurance. Sam lives in South Kingstown with his wife and three sons.
Related Articles
- Smart Benefits: Temporary Flexibility for Employers’ I-9 Compliance Rules
- Smart Benefits: Tips for Remote Work Success
- Smart Benefits: COVID-19 and Tax-Advantaged Health Plans
- Smart Benefits: Form 5500 Deadline Extended for Some Plans Due to COVID-19
- Smart Benefits: What Does COVID-19 Mean for the ACA Challenge?
- Smart Benefits: 5 Ways to Support Employees’ Mental Health During COVID-19
- Smart Benefits: Are Annual Reviews Still the Test Practice?
- Smart Benefits: How do Your Benefits Stack Up Against the Best Workplaces?
- Smart Benefits: New COBRA Notices a Good Reminder To Brush Up on Compliance
- Smart Benefits: Do You Need a Vaping Policy?
- Smart Benefits: Remind Employees of RI’s Paid Sick Leave Policy this Flu Season
- Smart Benefits: COVID-19 Deadline Relief for Health Plans Announced
- Smart Benefits: 5 Ways COVID-19 Could Change Benefits
- Smart Benefits: IRS Requires W-2 Reporting for FFCRA Leave Pay
- Smart Benefits: Form I-9 Flexibility Extended Due to Coronavirus
- Smart Benefits: ACA Affordability Threshold Increases for 2021
- Smart Benefits: And Much More - Sam Slade
- Smart Benefits: Medicare Part D Deconstructed - Jim Soucy
- Smart Benefits: Why Remote Workers Need a Vacation
- Smart Benefits: Reminder - PCORI Fee Due July 31 for Self-Funded Plans
- Smart Benefits: EEO Reporting Delayed Due to COVID-19
- Smart Benefits: How COVID-19 is Impacting Cafeteria Plans and FSAs
- Smart Benefits: HSA and High Deductible Health Plan Limits Increase for 2021
- Smart Benefits: With More Premium Rebates Coming, Are RI Nonprofits Next?
- Smart Benefits: Premiums for Employer-Sponsored Coverage Continue to Rise
- Thoughts on Independence - Sam Slade
- How COVID-19 Could Change Wellness - Sam Slade
- When it Comes to PTO, Should You Go Unlimited? - Sam Slade
- Attorney General Objected to Health Insurance Hikes. What Happens Next? - Sam Slade