Smart Benefits: Are Double-Digit Premium Increases a Thing of the Past?

Smart Benefits: Are Double-Digit Premium Increases a Thing of the Past?

A new study on employer health benefits from the Kaiser Family Foundation and the Health Research & Educational Trust shows that the average annual premiums for employer-sponsored family coverage increased 3% from last year – a big change from the double-digit rises in previous years.

The annual survey is designed to evaluate trends in employer-sponsored health coverage, including premiums, employee contributions, and cost-sharing provisions. The results, which included input from almost three thousand interviews with non-federal public and private firms, revealed:

-Premiums Flat: the average premium in a group plan was $16,834 for family coverage and $6,025 for single coverage this year, up slightly from $16,351 and $5,884, respectively, last year.

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-Employers Contributions Stable: On average, covered workers contributed an average 18% of the premium for single coverage and 29% of the premium for family coverage, the same percentages as 2013. 

-Deductibles Higher: Twenty-seven percent of employers offered a HDHP with an HRA or HSA this year, and 20 percent of covered workers are enrolled in these plans. The percentage of enrollees in a plan with a deductible of $2,000 or more increased from 15% last year to 18% this year.

Note that this survey considers small businesses to be those with 3-199 employees and large businesses those with over 200. That means smaller employers with less than 50 employees are in the same category as larger employers with more than 50 employees, which can skew the results since the Affordable Care Act draws the statutory line at – and is focused on – businesses with more than 50 employees.

The 2014 survey highlights stability among employer-sponsored plans last year. But does this quiet year mean big changes are in store for 2015 when the employer shared-responsibility provision in the ACA takes effect for large employers? We’ll see when Kaiser’s annual results come out next year.

Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.