by Shideh Kerman, BS, MBA
AFC Urgent Care Denver
Members of AFC Urgent Care Denver’s experienced medical staff.
Approximately 152 million Americans depend on employer-sponsored coverage for their healthcare needs. According to a new report published by the Henry J. Kaiser Family Foundation, employer-sponsored premiums increased across the board in 2018.
The findings show how healthcare costs have changed in just the past seven months, and review some of the major trends of healthcare costs in recent years.
Trend Alert: Premiums For Employer-Sponsored Health Insurance Plans Increased In 2018
The Kaiser Family Foundation Employer Health Benefits Survey assessed 4,070 randomly selected, non-federal public and private firms with more than 3 employees between January and July of this year. They found that employer-sponsored family health coverage rose by 5% to a dollar average of $19,616. Coverage for single premiums rose 3% to a dollar average of $6,896.
Unfortunately, increasing healthcare costs do not appear to stay in pace with other factors including wages and cost of living. According to the report, average family premiums have increased by over half (55%) since 2008, despite earnings increasing by only 26% and inflation increasing by 17%.
It’s not just premiums that are on the rise, either. 85% of employees covered by employer-sponsored health insurance have to pay a deductible (up from less than 60% one decade ago). And the average single deductible is now $1,573, almost 50% greater than a single deductible back in 2008 ($735). 25% of all covered workers are now expected to pay deductibles of at least $2,000.
This burden can have a significant impact on a person or family’s ability to manage bills associated with medical care.
Changes To Individual Health Insurance Plans Expected In 2019
The open enrollment period for 2019 begins on November 1. At that time, individuals living in the state of Colorado will be able to sign up with one of several different health insurance plan options, whether these are procured through employers or offered on the exchange.
Individual health plan options from major providers including Anthem BlueCross BlueShield, Bright Health, Kaiser Permanente CO, and Rocky Mountain Health Plans include HMO or Health Maintenance Organization, PPO or Preferred Provider Organization, HSA or Health Savings Account plans, Tier Plans and/or Catastrophic Plans which are a type of high-deductible health plan for people under 30 or those who qualify for a “hardship exemption.”
Coloradans who may be interested in new individual health plans include those who are self-employed, those who work for an employer who does not offer group plans, those whose benefit needs have recently changed, or those who are enrolled in a group plan or health plan that does not cover spouse or dependents or has high premiums.
Some Coloradans can expect some extra assistance in premium payment in 2019. That is, monthly premium tax credits for individuals in Colorado are expected to increase by 10% in 2019, from $212 in 2018 to $233. This is based on baseline hypothesized data from a 40-year-old non-smoker making $30,000 per year.
Prior to tax credits, 2019 monthly premiums for individuals in Colorado are projected to decrease by 6% for low-tier bronze plans, increase by 6% for middle-tier silver plans, and decrease by 5% for high-tier gold plans.
Employers Strategies In Combating Rising Health Insurance Costs
Many employers plan to incentivize employees to opt for high-deductible insurance plans as a way to control costs. An additional cost-effective approach may include incentivizing healthier life choices, e.g., many employers may contribute to health savings accounts or reimburse employees for gym memberships. Individuals and families can do their part to minimize healthcare costs by taking advantage of employer-sponsored incentives and adopting healthy behaviors as a lifestyle. Research indicates that preventive measures such as proper nutrition, regular physical activity, and disease screening can save thousands of dollars in medical costs.
Some other employers might cover some services offered in low healthcare costs settings. Reports indicate that three quarters (76%) of large companies cover healthcare services that are offered in retail clinics, such as urgent cares. Even a small number of companies provide financial incentives for workers to use these clinics. At AFC Urgent Care Denver with a new location just opened off of Speer Blvd., experienced medical staff is continually doing what they can to stay up-to-date with current changes in the socioeconomic dynamics of this country.