The rise in US health insurance premiums has
slowed to 7.2 percent (after any plan adjustments) in 2007 from 8.6
percent in 2006 but still remains significantly above the general
rise in the cost of living, reveals the United Benefit Advisors’
(UBA) Annual Benchmark Survey.
According to the US Department of Labor, consumer
prices as at 31 July 2007 were on average 2.4 percent above levels
of a year earlier. UBA is an alliance of 142 independent benefit
advisory firms.
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UBA’s 2007 survey, which covered 16,485 health plans sponsored by
11,723 employers nationwide, also revealed that the average annual
health plan cost per employee is $6,881 (medical only coverage),
with an average cost to employee of $3,110 and an average cost to
employer of $3,771 per employee. However, many employees still
enjoy free cover, said UBA: 32.7 percent of all plans surveyed
required no employee contributions and 8.3 percent required no
family contributions.
The UBA’s survey also revealed increased adoption of
consumer-driven health plans incorporating a health reimbursement
account or health savings account.
Plans of this nature now represent 8.8 percent of all plans offered
by employers compared with 5.8 percent in 2006, while 6 percent of
all covered employees are now enrolled in such plans, up notably
from 3.4 percent in 2006.
The majority of the increased adoption of consumer driven plans
continues to come from employers with under 1,000 employees. The
highest sub-segment is employers with 25 to 100 employees, said
UBA.
