The financial value of employer-sponsored health insurance is declining. To put it another way… employees are shouldering more of the financial burden of employer-sponsored health insurance.
See below for some important statistics and learn more about what employers can do in our blog post, “How to Successfully Address Rising Employee Health Plan Contributions.”
Compass Professional Health Services assembled average plan information from the Kaiser Family Foundation. The following table details:
- Average deductible
- Average employer contribution to medical insurance premiums
- Average employee contribution to medical insurance premiums
- Total cost to the employee of the deductible plus the employee premium contribution
- Total premium
[Please note that it only considers medical coverage and does not include pharmacy coverage and expenses.]
- Employees are paying more for premium contributions AND at the doctor’s office and hospital in the form of higher deductibles. Employee contributions increased 23 percent and deductibles increased 57 percent in the last five years.
- The share of the premium paid by employees is rising faster than the overall premium increase. The employee contribution rose by 23 percent in the last five years, while the total plan premiums rose by only 19 percent.
- If employees meet their deductible, the total cost to them (i.e. their premium contribution + the deductible) would be 41 percent of the entire premium. In other words, the employee would pay 41 percent of the costs out of their own pocket.
As this research shows, and many employees have already observed, more healthcare costs are being paid by employees. In previous years, employers could afford to take on more of these costs but as healthcare costs rise, companies are creating new benefits solutions for their workforce.
Why is this happening, and what can employers do to address the issue in a positive way for their employees? Learn more in our blog post, “How to Successfully Address Rising Employee Health Plan Contributions.”Employees are paying more for premium contributions AND at the Dr.'s office, with higher deductibles. Click To Tweet