Employer Health Care Costs Expected to Increase

September 10, 2012 (PLANSPONSOR.com) Despite health care reform legislation, health care costs will continue to increase for plan sponsors and employees, according to preliminary results of the United Benefit Advisors (UBA) 2012 Health Plan Survey.

The survey revealed that employer-sponsored health plans experienced an increase of 5%, compared with 8.2% last year. Additionally, more PPO, Consumer Directed Health Plans (CDHP) and HMO plans required and/or increased employee deductibles in 2012, continuing a trend toward shifting costs to employees.

Other key national findings from the survey include:

  • PPO plans have nearly two-thirds (61.7%) of all enrolled employees nationally; 
  • The average monthly employee input for plans of all plan types (HMO, PPO and CDHP) with contributions is $136 for single coverage and $494 for non-single or family coverage;
  • As a direct result of Patient Protection and Affordable Care Act (PPACA) changes, 91.7% of all plans now offer an unlimited lifetime maximum benefit, compared with 81.3% in 2011 and just 16.1% in 2010; and
  • Less than half (48%) of all covered employees also elected to cover their dependents (a decline of 1.9%).


“The intent of the survey is to provide employers of all sizes with the data they need to manage their health care benefit programs effectively,” said Tom McCormick, senior partner at EBS Capstone.

The 2012 UBA Health Plan Survey included responses from 17,905 health plans sponsored by 11,711 employers nationwide. The survey will become available to the public November 1.

More information is available at www.ubabenefits.com/Resources/NationalSurveys/tabid/112/Default.aspx.