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2012 Employer Health Benefits Survey

Section 1: Cost of Health Insurance

The average annual premiums in 2012 are $5,615 for single coverage and $15,745 for family coverage.  Average premiums increased 3% for single coverage and 4% for family coverage in the last year. Consistent with recent years, average family premiums for small firms (3-199 workers) ($15,253) are significantly lower than average family premiums for larger firms (200 or more workers) ($15,980).

Premium Costs for Single and Family Coverage

  • The average premium for single coverage in 2012 is $468 per month or $5,615 per year (Exhibit 1.1).   The average premium for family coverage is $1,312 per month or $15,745 per year (Exhibit 1.1).
  • The average annual premiums for covered workers in HDHP/SOs are lower for single ($4,928) and family coverage ($14,129) than the overall average premiums for covered workers. Average annual premiums for PPO plans are higher for single coverage ($5,850) and family coverage ($16,356) than the overall average premiums for covered workers (Exhibit 1.1).
  • The average premium for family coverage for covered workers in small firms (3-199 workers) ($15,253) is lower than the average premium for covered workers in large firms (200 or more workers) ($15,980) (Exhibit 1.2).  The average single premiums in small firms (3-199 workers) and larger firms do not differ significantly.
  • Average single and family premiums for covered workers are higher in the Northeast ($5,964 and $17,099) and lower in the South ($5,445 and $14,988) than the average premiums for covered workers in all other regions (Exhibit 1.3).
  • Covered workers in firms where 35% or more of the workers are age 26 or younger have lower average single and family premiums ($4,961 and $14,217) than covered workers in firms where a lower percentage of workers are age 26 or younger  ($5,669 and $15,871).  Covered workers in firms where 35% or more of the workers are age 50 or older have higher average single and family premiums ($5,860 and $16,392) than covered workers in firms where a lower percentage of workers are age 50 or older ($5,440 and $15,281) (Exhibit 1.5) and (Exhibit 1.6).
  • Covered workers in firms with a large percentage of lower-wage workers (at least 35% of workers earn $24,000 per year or less) have lower average single and family premiums ($5,135 and $14,694) than covered workers in firms with a smaller percentage of lower-wage workers ($5,673 and $15,871).  Covered worker in firms with a large percentage of higher-wage workers (at least 35% of workers earn $55,000 per year or more) have higher average single and family premiums ($5,789 and $16,427) than covered workers in firms with a smaller percentage of higher-wage workers ($5,448 and $15,087)  (Exhibit 1.5) and (Exhibit 1.6).
  • There is considerable variation in premiums for both single and family coverage.
    • Eighteen percent of covered workers are employed by firms that have a single premium at least 20% higher than the average single premium, while 19% of covered workers are in firms that have a single premium less than 80% of the average single premium (Exhibit 1.7) and (Exhibit 1.8).
    • For family coverage, 19% of covered workers are employed in a firm that has a family premium at least 20% higher than the average family premium, while 20% of covered workers are in firms that have a family premium less than 80% of the average family premium (Exhibit 1.7) and (Exhibit 1.8).

Premium Changes Over Time

  • The average annual single premium ($5,615) in 2012 is 3% higher than the average annual single premium in 2011 ($5,429), and the average annual family premium ($15,745) is 4% higher than the average annual family premium last year ($15,073) (Exhibit 1.11).
    • The $15,745 average annual family premium in 2012 is 30% higher than the average family premium in 2007 and 97% higher than the average family premium in 2002 (Exhibit 1.11).
  • For large firms (200 or more workers), the average family premium for covered workers in firms that are fully insured has grown at a similar rate to premiums for workers in fully or partially self-funded firms from 2007 to 2012 (36% in fully insured firms vs. 29% in self-funded firms) and from 2002 to 2012 (105% in fully insured firms vs. 94% in self-funded firms) (Exhibit 1.14).

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Section 1: Cost of Health Insurance

exhibits

2012 EHBS 1.1
Average Monthly and Annual Premiums for Covered Workers, Single and Family Coverage, by Plan Type, 2012
2012 EHBS 1.2
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Firm Size, 2012
2012 EHBS 1.3
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Region, 2012
2012 EHBS 1.4
Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Industry, 2012
2012 EHBS 1.5
Average Annual Premiums for Covered Workers with Single Coverage, by Firm Characteristics, 2012
2012 EHBS 1.6
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Characteristics, 2012
2012 EHBS 1.7
Distribution of Annual Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2012
2012 EHBS 1.8
Distribution of Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2012
2012 EHBS 1.9
Distribution of Annual Premiums for Covered Workers with Single Coverage, 2012
2012 EHBS 1.10
Distribution of Annual Premiums for Covered Workers with Family Coverage, 2012
2012 EHBS 1.11
Average Annual Premiums for Single and Family Coverage, 1999-2012
2012 EHBS 1.12
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Size, 1999-2012
2012 EHBS 1.13
Average Annual Premiums for Covered Workers with Family Coverage, by Firm Size, 1999-2012
2012 EHBS 1.14
Among Workers in Large Firms (200 or More Workers), Average Annual Health Insurance Premiums for Family Coverage, by Funding Arrangement, 1999-2012
EHBS 2012 Abstract Section 2: Health Benefit Offer Rates
x

Exhibit 1.1

Average Monthly and Annual Premiums for Covered Workers, Single and Family Coverage, by Plan Type, 2012
2012 EHBS 1.1
x

Exhibit 1.2

Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Firm Size, 2012
2012 EHBS 1.2
x

Exhibit 1.3

Average Monthly and Annual Premiums for Covered Workers, by Plan Type and Region, 2012
2012 EHBS 1.3
x

Exhibit 1.5

Average Annual Premiums for Covered Workers with Single Coverage, by Firm Characteristics, 2012
2012 EHBS 1.5
x

Exhibit 1.6

Average Annual Premiums for Covered Workers with Family Coverage, by Firm Characteristics, 2012
2012 EHBS 1.6
x

Exhibit 1.7

Distribution of Annual Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2012
2012 EHBS 1.7
x

Exhibit 1.8

Distribution of Premiums for Single and Family Coverage Relative to the Average Annual Single or Family Premium, 2012
2012 EHBS 1.8
x

Exhibit 1.11

Average Annual Premiums for Single and Family Coverage, 1999-2012
2012 EHBS 1.11
x

Exhibit 1.14

Among Workers in Large Firms (200 or More Workers), Average Annual Health Insurance Premiums for Family Coverage, by Funding Arrangement, 1999-2012
2012 EHBS 1.14