Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
August 25th, 2016
Benefits & Administration
Employer Health Insurance Deductibles Rise 50% for 2016
Although employers saw a slight reduction in healthcare costs this year, employees’ shares of rising deductible costs increased as they continue to accept lower coverage levels, finds the latest Health Plan Survey released by United Benefit Advisors (UBA), an independent employee-benefits advisory organization. The median in-network deductible on an employer-sponsored PPO health plan increased 50% from $1,000 to $1,500 in 2016, according to the survey. Average health plan costs for employers decreased from $9,736 in 2015 to $9,727 in 2016.  However, the employees’ share increased. Of the $9,727, employees contributed an average of $3,378 and employers contributed on average $6,350.Read more >
Less Than One-Third of Families on Track to Reach College Savings Goal
Seventy-two percent of American families are saving for their children’s higher education, a 24% increase from 58% in 2007, when Fidelity Investments’ College Savings Indicator Study was first published. More than two in five (41%) are invested in a 529 college savings plan, a 62% increase from the 26% measured in 2007. The median amount saved for college this year is still a modest $3,000, but this is double the figure from 2007. Among 529 plan owners, 45% have increased their contribution rate in the past 12 months. However, 49% are not sure they will reach their college savings goal, and only 29% are actually on track to achieve that goal.Read more >