Connecticut State Office of the Healthcare Advocate

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Employees Pay Bigger Share of Health Benefits

  Health insurance premiums surged an average of 12.7% last year, the largest increase since 1990, leading more employers to scale back benefit coverage and increase employee's share of the costs, according to an annual employer survey released by the Kaiser Family Foundation.

Premiums for individual coverage in group health plans cost an average of $3,060 this year, while family coverage averages $7,954, according to the survey of 750 employers.  Employee costs for single coverage average $454 per year.  The employee share of premiums for family coverage averages $2,084.  Deductibles for in-network providers in PPO plans rose 37% to $276, up from $201 in 2001.

 “One of the most alarming findings is the continued growth of underlying health care expenses, which indicates that we can expect double-digit inflation for the foreseeable future,” observes Jon Bagel, vice president at the Health Research and Educational Trust (HRET), which co-sponsored the survey.

 The use of three-tiered cost sharing in prescription drug benefit plans has nearly doubled since 2000, increasing to 57% of the responding employers.  The costs of drugs within the tiers is also  higher, with brand name drugs with generic substitutes costing an average of $26, compared to $20 per prescription in 2001.

 Source: Employee Benefits News, 2002