A new analysis by the employee benefits consultancy Mercer shows cost-shifting more of the total ... [+]
A dip in healthcare costs came in the form of lower deductibles and co-payments this year thanks to the tight labor market when employees can more easily find a job elsewhere.
A new analysis by the employee benefits consultancy Mercer shows cost-shifting more of the total employer-paid premium onto workers has gotten a reprieve this year, particularly for lower wage workers. Employees are just now seeing some of this good healthcare news continue for 2022 as they select their healthcare benefits during open enrollment, the annual period that allows them to change or choose coverage for the following year.
“Concerns about health care affordability for lower-wage workers, along with the need to retain and attract employees in a competitive labor market, have resulted in an unexpected reversal in some health plan cost-sharing trends,” Mercer said in a new report out this week that looks at health benefit changes this year. The data comes from Mercer’s national survey of more than 1,700 employer-sponsored health plan with 50 or more employees.
Here are some of the highlights:
· Among small employers with 50 to 499 workers, “the median deductible” for individual coverage in a preferred provider organization (PPO) dropped to $900 from $1,000.
· The median deductible for an individual in a health savings account-eligible plan fell to $1,850 from $2,000.
· Large employers did not increase employee premium contributions much, with the average monthly paycheck deduction rising $7 “for employee-only coverage” to $167 from $160.
· Large employers increased family coverage in PPO plans just $12 to $602 a month this year from $590 a month.
“Most employers not only held off on raising deductibles and other cost-sharing provisions, but some even made changes to reduce employees’ out-of-pocket spending for health services,” Mercer said.
