With reform in full swing, everyone wants to know what is up with employer-based health insurance. Of course, that mandate was delayed and other reform provisions have been eviscerated by the Administration, as the rolling disaster known as the PPACA unfolds, but there are impacts. An Agency for Healthcare Research & Quality Statistical Brief details private sector group coverage in 2012, based on survey data. (Stat. Brief) The Brief divides employer-based coverage into three types: single, single plus one and family. Companies are roughly divided into small, under 50 employees, and large, over 50 employees. About 55.4 million employees were enrolled in employer insurance coverage in 2012. About 51% had single coverage, 18% had employee plus one and 31% enrolled in family coverage. The primary difference between large and small employers was that employees in small firms had a higher percent of employees in single-only coverage, likely a result of higher premium sharing for single plus one and family coverage in those firms. Average premium costs were $5384 for single coverage, $10,621 for employee plus one and $15,473 for family coverage. The only significant difference in premium between large and small firms was that family coverage cost 7% less in small firms, a somewhat surprising result. Almost all employees must share some part of the premium, although 17% with single coverage did not have to do so, compared with about 8% for the other coverage types. Again, it is surprising to see that in small firms, employees were less likely to have to pay part of the premium. This was true for 45% of employees in small firms with single coverage, compared to 10% in large firms. And for the other coverage types, the comparable percents with no premium were around 30% for small companies and 4% in large ones. The average contribution to single coverage was $1118 and it was $4,236 for family coverage; and again employees in small firms tended to pay a lower percent of the premium for single coverage than did those in large firms; but for the other coverage types, employees in large firms paid a slightly lower percent of total premium. Health benefits have a high cost to companies, and a large percent of that burden, especially for families, is borne by the employee.
Employer-based Health Insurance
By Kevin RocheMarch 28, 2014Commentary
✅ 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
Another example of over-priced companies trying to find some way to survive in the post-epidemic financial world. Transcarent, which does something, somehow to “access high quality, affordable care” is buying...
March 6, 2023
In an attempt to swiftly revive two floundering health care companies, a PE firm has announced the merger and recapitalization of Revive Health and SwiftMD. You know they are...
January 30, 2023
Investors have not yet learned their lesson, as Pearl Health gathers a new round of $75 million in capital for its business of supporting physicians who want to participate in...
January 30, 2023
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
March 21, 2023
Minnesota’s New Energy Insanity, Part 7
Minnesota is a particularly poor place to rely on solar power, but other states aren't…
March 21, 2023
A Quick SVB Follow-up
As I suspected, the SVB saga is primarily one of regulatory malfeasance, coupled with political…
March 19, 2023
Tom Frieden Speaks in the WSJ
A public health expert writes an article for the WSJ which amply demonstrates why Americans…