Payroll and benefits management firm ADP issued results of a survey on large employers’ approaches to and actions on health benefits in the past and present year. (ADP Survey) Firms with more than 1000 employees were included, and there were 300 companies with over 900,000 employees who responded. The results indicate that health premiums per employee for these firms were about $9562, not including HRA or HSA funding costs. Employers paid about 76% of this cost and employees picked up the rest. Companies with more than 5000 employees paid about 14% less than those in the 1000 to 2500 employee range. Premiums were higher in manufacturing, professional services, and health care industries and lower in the hotel and restaurant ones. Much of these differences, however, may be due to differences in benefits or to demographic factors of the worker population, such as age. Many manufacturers, for example, are unionized and have richer plans. About 23% of all positions were classified as part-time and only 15% of these were eligible for benefits and of that 15% only 53% elected to take coverage, versus 77% of full-time employees. Under the reform law, generally employees who work 30 or more hours a week or 130 or more hours a month must be offered benefits. This may mean that more part-time employees may be eligible for benefits or it may cause employers to ensure that part-time employees do not work enough hours to be eligible for benefits.
✅ Subscribe via Email
About this Blog
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].
Healthy Skeptic Podcast
This is an outstanding report on total global drug spending and trends, with projections out to 2025. It helps you understand this important area of health care, which does much...
June 1, 2021
MedPAC 2019 Report to Congress
June 18, 2019
What do you get when you combine a company with a commodity business model, that out of desperation massively overpays for another company that has a commodity business model? $10...
July 27, 2022
The “stupid” model for health care venture capital investing is alive and well. Everside health, which operates primary care clinics and has grown by acquiring other failing health care businesses,...
July 26, 2022
Apparently not even a cute name can save you if you have a stupid business. I constantly bemoan the mis-application of capital and health care is Exhibit A. Olive, another...
July 26, 2022
Access ACO Care Management Chronic Disease Comparative Effectiveness Consumer Directed Health Consumers Devices Disease Management Drugs EHRs Elder Care End-of-Life Care FDA Financings Genomics Government Health Care Costs Health Care Quality Health Care Reform Health Insurance Health Insurance Exchange HIT HomeCare Hospital Hospital Readmissions Legislation M&A Malpractice Meaningful Use Medicaid Medical Care Medicare Medicare Advantage Mobile Pay For Performance Pharmaceutical Physicians Providers Regulation Repealing Reform Telehealth Telemedicine Wellness and Prevention Workplace