Researchers at the Kaiser Family Foundation, the National Opinion Research Center at the University of Chicago, and Health Research & Educational Trust designed and analyzed their annual survey of employers to get a clear perspective of trends in employer-sponsored health benefits.
The survey provides comprehensive details regarding health premiums, employee contributions, and cost-sharing provisions, as well as other pertinent information.

Included in the 2009 survey, conducted from January through May, were a total of 3,188 public and private firms having three or more employees. Of these randomly selected organizations, 2,054 responded to the full survey, while 1,134 also responded to a supplemental question concerning their offering of coverage.

Among the key findings of the survey was that the average family premium increased by 5 percent, whereas no notable increase was seen in the average premium for single coverage. In addition, the number of covered workers having a deductible of $1,000 or more for single coverage rose by an average of 4 percent, and an increase was seen in employee co-payments for office visits. The percentage of large firms offering wellness programs and health risk assessments was also shown to be on the rise.

The stability seen in this year’s survey could be due, in part, to factors ranging from a strong commitment by employers to maintaining benefits for workers, to firms making health benefit decisions for the upcoming plan year, but prior to feeling the full impact of the economic crisis. Another issue to consider is that the survey collected information from existing firms and does not account for workers who lost health benefits due to firm downsizing or closing.

The average annual premiums for employer-sponsored health insurance are now $4,824 for single coverage and $13,375 for family coverage. Average premiums for family coverage among workers in small firms having 3 to 199 employees is lower than premiums for workers in large firms having 200 or more employees. Similarly, average premiums for high-deductible health plans with a savings option are lower than the overall average for both single and family coverage for all plan types. Employees contribute 17 percent of the total premium for single coverage, and 27 percent for family coverage, which is comparable to the amounts paid over the last several years.

Covered employees having medical insurance co-payments spend $20 on average for primary care, and $28 for specialists for in-network office visits. This is up from last year’s costs of $19 and $26, respectively. The percentage of covered workers with co-payments of $25 to $30 dollars for primary care physician office visits has increased from 12 percent in 2004 to 31 percent in 2009.

Sixty percent of employers offered health benefits in 2009, which is closely comparable to last year’s 63 percent. In addition, 58 percent of these offer at least one wellness program such as a weight loss program, gym membership discounts, smoking cessation program or other program, while 16 percent offer employees the option of completing a health risk assessment to help them identify potential health risks.

Due to the economic downturn, a total of 21 percent of firms reported a reduction in benefits or increased cost sharing, while 15 percent reported having increased the employee share of premiums. Projected changes to health benefits among firms for next year will definitely have an impact on the employee wallet. About 42 percent of firms plan to increase employee contributions to premiums, while 36 percent intend to increase deductible amounts, and 39 percent will increase office visit cost sharing or increase the amount that employees pay. In addition, 37 percent will increase costs for prescription drugs. However, only 2 percent report that they are likely to drop coverage, and another 6 percent report that it is somewhat likely that coverage will be dropped.

In conclusion, the survey report indicates that “given the ongoing economic problems facing businesses, it will be important to monitor health benefits offer rates and coverage levels as well as other plan attributes. This information also will help inform the continuing health reform debate.”