Employer Health Insurance Premium Growth Hits Low Point, Analysis Finds

In 2013, large employers and their workers saw the lowest healthcare premium increase in more than a decade, with rates averaging 3.3 percent higher than they were in 2012, according to an analysis from human resources solutions firm Aon Hewitt.

moneyBy comparison, health insurance premium rates went up by 4.9 percent in 2012 and 8.5 percent in 2011. However, Aon predicts the slow cost growth won't last. The analysis projects average health premium increases in the 6 to 7 percent range in 2014.

Additionally, the analysis found the average healthcare cost per employee for large companies was $10,471 in 2013, compared with $10,131 in 2012. Employees were asked to contribute an average of $2,303 toward their total premium costs in 2013, up from $2,200 in 2012.

Average employee out-of-pocket costs increased by 12.8 percent in 2013 to $2,239. Average out-of-pocket spending went up by 6.2 percent to $1,984 in 2012 compared with 2011.

In 2014, Aon estimates average healthcare costs will go up to $11,176 per employee, and workers will contribute an estimated 22.4 percent toward their premiums. Average out-of-pocket costs are expected to rise to $2,470.

In preparation for cost increases and other changes, 72 percent of employers are focusing on programs that improve health risk and reduce medical costs, according to the analysis.

More Articles on Health Insurance:
Federal Workers' Health Premiums to Increase 3.7% in 2014
HHS: PPACA Reduced Premium Costs by $1.2B in 2012
Increasing Employer Premiums Could Up Federal Outlays by $6.7B, Study Says 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars