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ADP Report on the Insured Population

By July 8, 2013Commentary

ADP, the large payroll and benefits processor, has released its first report on health benefits with trends for large companies, based on actual data from 175 companies, with about 600,000 employees.  (ADP Report)   In general the company found that the percentage of full-time employees at these larger companies who were eligible for health care coverage has remained steady from 2010 to 2013, at about 88%,  and the overall percentage of those who take advantage of access to this coverage has also stayed about the same during this time period, at around 65%.  The average monthly premium for health insurance rose a total of about 14% from 2010 to 2013, with just a 3.1% rise from 2012 to 2013, but again, these are likely to be  larger employers who always see the most moderate increases and these employers have increased cost-sharing, which makes the overall cost of the benefit package lower, since the employee is picking up a lot more cost in the form of deductibles and copayments.  Employers are also picking up less of the premium for dependent coverage.   The average age of insured employees increased over the period.  Younger workers are the most likely not to participate in health plans, with only about half doing so, and with the percent who do decreasing 4.6% over the period of the analysis.  This may be due to lower income levels in this group or to a perception that there wasn’t a health issue driving a need for coverage.  In addition, premiums for younger workers have risen faster than for other age groups, largely due to regulatory restrictions on age-based rating.  New Jersey is the most expensive state and Colorado had the lowest average monthly premium.   However, New Jersey had the lowest rate of increase, while Colorado’s was also low, but Florida and North Carolina had high growth rates.

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