Survey of Employer Benefits Finds Continued Cost-Shifting

For the first time over half (51%) of all workers are in plans with at least a $1,000 deductible for single coverage. This is up from just 31% of workers 5 years ago and 10% of workers 10 years ago.

This is a finding from the Kaiser Family Foundation’s annual survey of employer sponsored health benefits. The report confirms what we’ve seen at the bargaining table: health plans are shifting considerable costs to workers through skimpier plan designs.

The average deductible for single coverage was $1,478 per year in 2016, a 140% increase since 2007 when the average deductible was $616. 

Increases in average deductibles are largely being driven by the switch to high-deductible health plans (HDHPs) which are often paired with tax-preferred health accounts. 29% of workers are now enrolled in HDHPs, up from 5% ten years ago. 

Drew Altman, the president of the Kaiser Family Foundation, commented:

If we were ever to tell an average person that we’re living in a period of historic moderation in health-care costs, they would probably think we’re out of our minds — because what they pay out of pocket has been going up over time. ... That’s kind of the pain index for people.

Links:

2016 Employer Health Benefits Survey (Kaiser Family Foundation, September 14, 2016)

Workers Pay More for Health Care as Companies Shift Burden, Survey Finds (New York Times, September 14, 2016)

How companies are quietly changing your health plan to make you pay more (Washington Post, September 14, 2016)