Kaiser Family Foundation Study Shows Health Insurance Costs Rising For Both Employers And Employees

A Kaiser Family Foundation study revealed that health insurance costs rose in 2013 for employees in the United States. During the same period, American employers experienced a parallel rise in health insurance premiums. Overall, the total cost of employer-provided health benefits increased 4% for family plans and 5% for individual plans.

Increases In Health Insurance Costs

As a provider of premium benefits programs, Pontrelli, Timour & Associates knows from experience that such increases in health insurance costs usually can be mitigated with effective health insurance solutions. Even with the bevy of new challenges resulting from problems raised by the Affordable Care Act, PT Benefits knows how to provide legitimate savings for both the employers and the employees of our client companies.

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Rising Health Insurance Costs

According to the study by the nonprofit Kaiser Family Foundation in conjunction with the Health Benefit & Educational Trust., 57% of firms with at least three employees offered health benefits in 2013. The authors of the study noted the figure reveals a slight change from 2012, when 61% of employers offered health benefits. The 61% of 2012 actually was a slight increase from the 60% of employers offering health benefits in 2011.

The average total cost for a family health plan hit $16,351 this year. In most cases, such costs are split between employer and employee. The typical employee’s share of that premium hit $4,565, up about 6% from 2012. In addition to rising employee premiums, the survey revealed that employees are getting hit with larger deductibles and higher out of pocket costs as well. For example, the average deductible for a health plan that covers only the employee reached $1,135, up from $1,097 in 2012.

Employees of small businesses have been hit particularly hard. It historically has been the case that employees of small businesses pay more for their health coverage than employees at larger companies. Nearly a third of workers at companies with fewer than 200 employees have deductibles of at least $2,000. Does it seem fair that an employee should be penalized for choosing to work for a small business as opposed to the alternative?

Health Insurance Costs Higher In 2014?

Looking forward to 2014, and with the implementation of the PPACA’s Minimum Essential Coverage plans, this trend will continue.  Premium rates will somewhat stabilize, but employees will be faced with significantly higher out of pocket costs and out of pocket maximums.  Another significant consideration for next year will be doctor and hospital networks.  Each insurance carrier will have multiple networks and it will be critical to determine which network of providers will work best for you.

Since PT Benefits understands how challenging benefits program administration can be for small to mid-sized business owners, we do our best to provide the best in services and solutions. As benefits administration experts, we offer the guidance our clients need to avoid the pitfalls of high costs and premiums. To learn more about how we can help you, please call 866-782-9899 or fill out our handy contact form.


Chris Pontrelli