The state of employer-based health insurance: 8 stats to know

Nick Moran - Print  | 

The employer-based health insurance landscape has seen constant readjustment over the past decade, putting firms at a decisive crossroads. 

Here are eight statistics to know:

  1. Of 1,765 firms surveyed by the Kaiser Family Foundation in 2020, 99 percent of large firms offered benefits to at least some employees while 55 percent of small firms did so. The overall offer rate for benefits was 56 percent.
  2. In an article by Stanford professor Alain Enthoven, PhD, he noted that over two-thirds of workers use self-funded/insured arrangements. 
  3. Premiums are on the rise, with annual coverage up 4 percent and hitting $21,342.
  4. On average, employees pay $5,588 toward employer-sponsored plans. Their average deductible is $1,644 for single coverage.
  5. Premiums are rising more rapidly than worker contributions since 2010. While average employee contributions rose over $1,500 since 2010, premiums have risen nearly $6,000 at the same time.
  6. Larger firms are contributing significantly more to premiums than smaller firms, especially when it comes to family coverage. Large firms cover at least some of premiums for family plans 99 percent of the time.
  7. Between 2015 and 2020, preferred provider organization plans represent the highest percentage of enrollment. Over the past five years, large firms have seen a growth in high-deductible health plans with savings options, which rose 9 percent.
  8. With all of the shifts among employer-sponsored insurance, its broad prevalence is on the decline. Since 1999, both the percentage of firms offering benefits (down 4 percentage points) as well as the percentage of workers whose employers offer benefits (down 10 percentage points) have declined.

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