Smart Benefits: Premiums for Employer-Sponsored Coverage Continue to Rise

Smart Benefits: Premiums for Employer-Sponsored Coverage Continue to Rise

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.

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- 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.