Benefits September 29, 2011

Employers See Health Insurance Costs Jump

September 29, 2011 (PLANSPONSOR.com) – An annual survey by the Kaiser foundation, along with the Chicago-based Health Research and Educational Trust, found a huge increase in health insurance costs in 2011, after years of relatively small increases.
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The Philadelphia Inquirer reports prices rose 9% for family coverage, with the average family premium reaching $15,073 and employees only picking up $4,129 of that cost. Last year, family premium prices rose 3%. The average cost of a single worker’s plan is $5,429 with workers paying $921 toward the premium.  

Kaiser believes this reflects the influence of the Patient Protection and Affordable Care Act. About 2.3 million young people gained coverage because of the new law.  

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Other key findings from the survey include: 

  • More and more workers are enrolled in high deductible health plans. In 2005, these plans barely existed and now 17% of employees are enrolled in them. 
  • Twelve percent of those enrolled in high deductible plans face a deductible of $2,000 or more for single coverage. Half employed in small firms pay more than $1,000. 
  • In 1988, two-thirds of all large firms offered health benefits to retirees. In 2011, it’s barely one in four. 
  • Even though the average family premium is about $15,000, coverage for one in five families tops $18,087. 

Full survey results are available at http://ehbs.kff.org/.  

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