Employee Benefits BENCHMARKING DATA from 2010 and prior Resource: The Henry J. Kaiser Family...

Employee BenefitsBENCHMARKING DATA

from 2010 and prior

Resource: The Henry J. Kaiser Family Foundation (not Kaiser Permanente)

discover the DBS difference(888) 490-7530 x 111 Mike Pondrom

x 115 Brenda Fagan-Johnson / x 116 Mike Lutosky x 118 John Willadsen x191 David Broome

ABOUT THE SURVEY• The Henry J Kaiser Family Foundation is a very reputable, third- party

annual survey of employers providing a detailed look at trends in employer-sponsored health coverage, including premiums, employee contributions, cost-sharing provisions, and other relevant information.

• The survey continued to document the prevalence of high-deductible health plans associated with a savings option and included questions on wellness benefits and health risk assessments.

• The 2010 survey included 3,143 randomly selected public and private firms with three or more employees (2,046 of which responded to the full survey and 1,097 of which responded to an additional question about offering coverage).

• Researchers at the Kaiser Family Foundation, the National Opinion Research Center at the University of Chicago, and Health Research & Educational Trust designed and analyzed the survey.

• The attached slides are only part of the full survey – the slides which DBS feel present the most relevant data for our employer clients. For the entire survey, please refer to the following web site: http://ehbs.kff.org/

DBS Benchmarking DataTable of Contents

1) Premiums Information2) Contribution Information3) Plan Design Information4) Health Savings Accounts (H.S.A) / CDHPs5) WELLNESS


TOPIC: Premiums

Average Annual Health Insurance Premiums and Worker Contributions for Family Coverage, 2000-

2010

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2000-2010.

$6,438

$13,770

147% Worker

Contribution Increase

114% Premium Increase

Average Annual Health Insurance Premiums and Worker Contributions for Family Coverage, 2005-

2010

Note: The average worker contribution and the average employer contribution may not add to the average total premium due to rounding.


$8,167$9,773

$2,713

$3,997

2005 2010

Worker Contribution

Employer Contribution

$10,880

$13,770

$1,284Worker

Contribution Increase

47%

20%

27%

Percentage Increase in Health Insurance Premiums Compared to Inflation

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2009. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1999-2009.

11%

10%

13% 13%

10%

9%

6%

5% 5% 5%

3.1% 3.3%

1.6%2.2% 2.3%

3.5% 3.5%2.6%

3.9%

-0.7%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Premium Increase

CPI

Annual Change Premiums for Employer-Sponsored Health Insurance, FEHBP, and

CalPERS, 2000-2009

11% (ESI)

9% (FEHBP) 9% (CalPERS)

-5%

0%

5%

10%

15%

20%

25%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Employer-Sponsored Health Insurance FEHBP CalPERS

Note: Employer-sponsored health insurance is the average premiums across all size employers based on the annual survey conducted by the Kaiser Family Foundation and Health Research and Educational Trust. The premiums are for employees (not retirees), for a family of four. FEHBP is the Federal Employees Health Benefits Program, which provides health insurance benefits to over 8 million federal enrollees, retirees, and their family members and former spouses. FEHBP data for this exhibit are weighted average premiums for employees (both non-Postal and Postal, not including retirees) in all plans, across all enrollment options (self and family). CalPERS is the California Public Employees’ Retirement System, which provides retirement and health benefits to California public employees and retirees. CalPERS is the nation’s third largest purchaser of employee health benefits, after the federal government and General Motors, covering nearly 1.3 million active and retired state and local government public employees and their families. CalPERS data for this exhibit are weighted average premiums for Basic Plans (non-Medicare Plans), across all enrollment options (single, 2-person, and family); the 1996 premium is for a period longer than 12 months because of a change in the reporting period.

Source: Employer-sponsored health insurance premiums: Kaiser Family Foundation/Health Research and Educational Trust, Employer Health Benefits, 2009 Annual Survey, Exhibit 1.12, at http://www.kff.org/insurance/7936/index.cfm. FEHBP: Kaiser Family Foundation calculations using data provided by the Office of Personnel Management. CalPERS: Data for 1993, 1996, and 1999 provided by CalPERS; data for 2000-2009 from Facts at a Glance: Health, September 2009, on the CalPERS website at http://www.calpers.ca.gov/eip-docs/about/facts/health.pdf.

5% (CalPERS

)

5% (ESI)

6% (FEHBP)

http://www.kff.org/insurance/7936/index.cfm

http://www.calpers.ca.gov/eip-docs/about/facts/health.pdf

Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Region, 2010

Monthly Annual

Single

CoverageFamily

CoverageSingle

CoverageFamily

Coverage

HMO

West 401* 1,142 4,817* 13,703

PPO

West 445 1,157 5,338 13,880

HDHP/SO

West 372 989 4,459 11,873

ALL PLANS

West 421 1,122 5,056 13,463


TOPIC: Contributions

Cumulative Changes in Health Insurance Premiums, Workers’ Contribution to Premiums, Inflation, and

Workers’ Earnings, 1999-2010

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2010. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 1999-2010; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 1999-2010 (April to April).

* Estimate is statistically different from estimate for the previous year shown (p<.05).


Average Percentage of Premium Paid by Covered Workers for Single and Family Coverage, 1999-2010

Average Annual Worker and Employer Contributions to Premiums and Total Premiums for Single Coverage,

1999-2010



$2,196

$2,471*

$2,689*

$3,083*

$3,383*

$3,695*

$4,024*

$4,242*

$4,479*

$4,704*

$4,824

$5,049*

Average Annual Worker and Employer Contributions to Premiums and Total Premiums for Family Coverage,

1999-2010



$5,791

$6,438*

$7,061*

$8,003*

$9,068*

$9,950*

$10,880*

$11,480*

$12,106*

$12,680*

$13,375*

$13,770*

Single Coverage Family Coverage

Average Annual Worker Premium Contributions and Total Premiums for Covered Workers, Single and Family

Coverage, by Firm Size, 2010

* Estimates are statistically different between All Small Firms and All Large Firms (p<.05).

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2010.

Among Firms Offering Health Benefits, Percentage of Firms That Report They Made the Following Changes as a

Result of the Economic Downturn, by Firm Size, 2010

*Estimate is statistically different between All Small Firms and All Large Firms within category (p<.05).


Among Firms Offering Health Benefits, Distribution of Firms Reporting the Likelihood of Making the Following

Changes in the Next Year, 2009

Very Likely

Somewhat Likely

Not Too Likely

Not At All Likely

Don’t Know

Increase the Amount Employees Pay for Health Insurance

21% 20% 14% 44% <1%

Increase the Amount Employees Pay for Deductibles

16% 20% 18% 46% <1%

Increase the Amount Employees Pay for Office Visit Co-pays or Coinsurance

15% 25% 19% 41% <1%

Increase the Amount Employees Pay for Prescription Drugs

14% 23% 19% 43% <1%

Restrict Employees’ Eligibility for Coverage

4% 5% 8% 83% <1%

Drop Coverage Entirely 2% 6% 6% 86% <1%

Offer HDHP/HRA‡ 5% 15% 19% 59% 1%

Offer HSA-Qualified HDHP‡ 6% 16% 24% 54% <1%

‡Among firms not currently offering this type of HDHP/SO.



TOPIC: Plan Designs & Misc.

Distribution of Health Plan Enrollment for Covered Workers, by Plan Type, 1988-2010

* Distribution is statistically different from the previous year shown (p<.05). No statistical tests were conducted for years prior to 1999. No statistical tests are conducted between 2005 and 2006 due to the addition of HDHP/SO as a new plan type in 2006.

Note: Information was not obtained for POS plans in 1988. A portion of the change in plan type enrollment for 2005 is likely attributable to incorporating more recent Census Bureau estimates of the number of state and local government workers and removing federal workers from the weights. See the Survey Design and Methods section from the 2005 Kaiser/HRET Survey of Employer-Sponsored Health Benefits for additional information.

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2010; KPMG Survey of Employer-Sponsored Health Benefits, 1993, 1996; The Health Insurance Association of America (HIAA), 1988.

*

*

*

*

*

*

Among Covered Workers With Copayments for a Physician Office Visit with a Primary Care Physician, Distribution of Copayments, by Plan Type, 2010 only

$5 Per Visit $10 Per Visit $15 Per Visit $20 Per Visit $25 Per Visit $30 Per Visit Other

HMO

2010* 1 8 22 38 15 12 4

PPO

2010* 1 7 16 31 25 13 6

POS

2010* 1 7 11 24 20 29 8

HDHP/SO‡

2010 0 2 17 34 10 17 20

ALL PLANS

2010* 1 7 18 32 22 15 6

* Distribution is statistically different from distribution for the previous year shown (p<.05).

Percentage of Covered Workers Enrolled in a Plan with a General Annual Deductible of $1,000 or More

for Single Coverage, By Firm Size, 2006-2010

*Estimate is statistically different from estimate for the previous year shown (p<.05).

Note: These estimates include workers enrolled in HDHP/SO and other plan types. Because we do not collect information on the attributes of conventional plans, to be conservative, we assumed that workers in conventional plans do not have a deductible of $1,000 or more. Because of the low enrollment in conventional plans, the impact of this assumption is minimal. Average general annual health plan deductibles for PPOs, POS plans, and HDHP/SOs are for in-network services.


Percentage of Covered Workers Enrolled in a Plan with a General Annual Deductible of $2,000 or More

for Single Coverage, By Firm Size, 2006-2010

*Estimate is statistically different from estimate for the previous year shown (p<.05).

Note: These estimates include workers enrolled in HDHP/SO and other plan types. Because we do not collect information on the attributes of conventional plans, to be conservative, we assumed that workers in conventional plans do not have a deductible of $2,000 or more. Because of the low enrollment in conventional plans, the impact of this assumption is minimal.


Changes in Average PPO Costs for Family Coverage, 2006-2010

Note: Each 2010 estimate is statistically different from the 2006 estimate within category (p<.05). The survey has asked comparable questions on family deductibles only since 2006. An aggregate deductible is one in which all family members’ out-of-pocket covered expenses count toward meeting the deductible amount.


Among Covered Workers with a General Annual Health Plan Deductible for Single Coverage, Average Deductible, by Plan

Type and Firm Size, 2010 (In-network PPO deductible)

Single Coverage

HMO

All Small Firms (3-199 Workers) $998*

All Large Firms (200 or More Workers) 354*

ALL FIRM SIZES $601

PPO

All Small Firms (3-199 Workers) $1,146

All Large Firms (200 or More Workers) 460

ALL FIRM SIZES $675

HDHP/SO

All Small Firms (3-199 Workers) $2,216*

All Large Firms (200 or More Workers) 1,676*

ALL FIRM SIZES $1,903


TOPIC: Health Savings Accounts

Among Firms Offering Health Benefits, Percentage That Offer an HDHP/HRA and/or an HSA-Qualified

HDHP, 2005-2010


‡ The 2010 estimate includes 0.3% of all firms offering health benefits that offer both an HDHP/HRA and an HSA-qualified HDHP. The comparable percentages for 2005, 2006, 2007, 2008 and 2009 are 0.3%, 0.4%, 0.2%, 0.3% and 0.1%, respectively.


‡

Among Firms Offering Health Benefits, Percentage That Offer an HDHP/SO, by Firm Size, 2005-2010

* Estimate is statistically different from estimate for previous year shown (p<.05).

Note: The 2010 estimate includes 0.3% of all firms offering health benefits that offer both an HDHP/HRA and an HSA-qualified HDHP. The comparable percentages for 2005, 2006, 2007, 2008 and 2009 are 0.3%, 0.4%, 0.2%, 0.3% and 0.1%, respectively.


Percentage of Covered Workers Enrolled in an HDHP/HRA or HSA-Qualified HDHP, 2006-2010



Percentage of Covered Workers Enrolled in an HDHP/HRA or HSA-Qualified HDHP, by Firm Size,

2010

*Estimates are statistically different between All Small Firms and All Large Firms within category (p<.05).


Among All Large Firms (200 or More Workers) Offering Health Benefits to Active Workers, Percentage of Firms Offering

Retiree Health Benefits, 1988-2010*

*Tests found no statistical difference from estimate for the previous year shown (p<.05). No statistical tests are conducted for years prior to 1999.

Note: Data have been edited to include the less than 1% of large firms who report “yes, but no retiree” responses in 2010. Historical numbers have been recalculated so that the results are comparable.

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2010; KPMG Survey of Employer-Sponsored Health Benefits, 1991, 1993, 1995, 1998; The Health Insurance Association of America (HIAA), 1988.


TOPIC: WELLNESS

Among Firms Offering Health Benefits, Percentage of Firms That Offer Employees Health Risk Assessments

and Offer Incentives to Complete Assessments, by Firm Size, 2010

*Estimate is statistically different between All Small Firms and All Large Firms within category (p<.05).

‡ Among Firms Offering Employees Option to Complete Health Risk Assessment.

Note: A health risk assessment includes questions on medical history, health status, and lifestyle, and is designed to identify the health risks of the person being assessed.


‡

57%

34%

27% 28%

34%

24%19%

12%

93%

79%

63% 61% 59%

53%

47%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% All Small Firms (3-199 Workers)

All Large Firms (200 or More Workers)

*Estimate is statistically different within type of wellness program between All Small Firms and All Large Firms (p<.05).


Among Firms Offering Health Benefits, Percentage Offering a Particular Wellness Programs to Their

Employees, by Firm Size, 2009

Weight Loss

Programs*

Gym Membershi

p or Exercise

Facilities*

Smoking Cessation*

Personal Health

Coaching*

Classes in Nutrition/ Healthy Living*

Web-based Resources for Healthy

Living*

Wellness Newsletter*

Offer at Least One Wellness Program*

Employee Benefits BENCHMARKING DATA from 2010 and prior Resource: The Henry J. Kaiser Family...

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