Worker Share of Heath Insurance Grows 14%

While the average US health care family premium grew an average of 3% in 2010, the average share paid by workers rose 14%, according to new data from the Kaiser Family Foundation and the Health Research & Educational Trust (HRET).

Total Family Premium Averages $13K
Total premiums for employer-sponsored family coverage, including what employers themselves contribute, rose 3% to $13,770 on average in 2010. Single coverage averaged $5,049, a 5% year-over-year increase.

Meanwhile, workers on average are paying nearly $4,000 this year toward the cost of family health coverage, an increase of 14%, or $482, above what they paid last year. For single coverage, workers are paying an average of $899 this year, up 15% from $779 last year. Employer contributions did not rise during the last year.

Costs, Worker Contributions Skyrocket Since ‘00
While these increases were relatively moderate on an annual basis, compared to average premium costs in 2000 today’s health insurance is far more expensive. For example, in 2000, an average employer-sponsored family plan cost $6,438 per year, with workers contributing an average of $1,619. Cost has risen 114% and worker contributions have risen 147% since that time.

Since 2005, workers’ contributions to premiums have gone up 47%, while overall premiums rose 27%, wages increased 18%, and inflation rose 12%.

Deductibles Also Rise
Many employers are also raising the annual deductibles workers must pay before their health plans begin to share most health care costs. A total of 27% of covered workers now face annual deductibles of at least $1,000, up from 22% in 2009, the survey finds. Among small firms (three to 199 workers), 46% face such deductibles.

Small Firms Drive Increase in Benefits Offerings
Surprisingly, the survey saw the percentage of firms offering health benefits in 2010 increase sharply to 69%, up from 60% in 2009. Kaiser analysis indicates this is largely because of an increase in the offer rate among firms with three to nine workers. Because most workers are employed by large firms, the shift among the smallest firms did not have a major effect on either the percentage of workers offered health benefits or the percentage of workers covered at their job.

Other Findings

• In response to the economic downturn, 30% of employers say they reduced the scope of health benefits or increased cost sharing, and 23% report increasing the amount employees pay for coverage.
• Among covered workers with a copayment for in-network physician office visits, the average copayment increased a small but statistically significant amount from 2009 to 2010 – from $20 to $22 for primary care and from $28 to $31 for specialty care.
• In response to the 2008 Mental Health Parity and Addiction Equity Act, 31% of firms with more than 50 workers made changes to the mental health benefits they offer. Most of this group eliminated limits on coverage to comply with the law, though a small share (5% of those making changes) dropped mental health coverage altogether.
• About three-fourths (74%) of employers offering health benefits offer at least one of the following wellness programs: weight loss program, gym membership discounts or on-site exercise facilities, smoking cessation program, personal health coaching, classes in nutrition or healthy living, web-based resources for healthy living, or a wellness newsletter.
• Among firms offering coverage, 11% give their employees the option of completing a health risk assessment to help employees identify potential health risks. Within this group, 22%, or a relatively small 2% of all employers , offer financial incentives such as lowering the worker’s share of premiums or offering merchandise, gift cards, travel, or cash to their workers. Large firms are more likely than small firms both to offer assessments and to offer financial incentives.

Adults Look Up Health Info Online
In a sign US adults are taking on more responsibility for their own health care, three-quarters (76%) of US adults have looked up health information online at some point, according to a recent Harris Poll. Among currently online adults, that figures jumps to almost nine in 10 (88%).

Sixty-two percent of online adults have looked up health information online in the past month. By number, about 175 million US adults have looked online for health information at least once.

About the Data: The Kaiser Family Foundation/Health Research & Educational Trust 2010 Annual Employer Health Benefits Survey (Kaiser/HRET) reports findings from a telephone survey of 2,046 randomly selected public and private employers with three or more workers.
http://www.marketingcharts.com/direct/adults-look-up-health-info-online-13791/