Health plan benefits
Pro Research Analysisby 
Searched over 200M research papers
Health Plan Benefits: Trends and Insights
Rising Premiums and Enrollment in Consumer-Directed Plans
Premium Increases Over the Years
Health plan premiums have consistently risen over the years. In 2008, the average annual premiums were $4,704 for single coverage and $12,680 for family coverage, marking a 5% increase from the previous year1. By 2010, these premiums had risen to $5,049 for single coverage and $13,770 for family coverage, reflecting a 5% and 3% increase from 2009, respectively2. This trend continued into 2015 and 2016, with premiums reaching $6,251 and $6,435 for single coverage, and $17,545 and $18,142 for family coverage, respectively3 5.
Growth in High-Deductible Health Plans (HDHPs)
Enrollment in high-deductible health plans (HDHPs) has seen a significant increase. In 2008, 8% of covered workers were enrolled in HDHPs, up from 5% in 20071. By 2016, nearly three in ten covered workers were enrolled in HDHPs with a savings option, a notable increase from previous years5. These plans are associated with lower health care costs due to reduced utilization of health services, including preventive care7.
Employer Health Benefits and Wellness Programs
Employer Contributions and Cost Sharing
Employers have increasingly shifted more costs to workers. In 2010, workers paid more toward premiums, and 30% of firms reported reducing the scope of benefits or increasing cost sharing due to the recession2. By 2016, workers contributed 18% of the premium for single coverage and 30% for family coverage5.
Wellness Programs and Incentives
Many firms have introduced wellness programs and financial incentives to promote health. In 2015, half of large employers offered or required biometric screenings, with 20% providing incentives or penalties tied to biometric outcomes3. This trend continued in 2016, with employers offering incentives for completing wellness activities and seeking care at alternative settings5.
Health Plan Selection and Employee Preferences
Federal Employees Health Benefits Program (FEHBP)
The FEHBP provides a case study in health plan selection. Despite multiple options, only 21% of enrollees switched plans during the 1982 open season, often to lower their premium contributions while maintaining benefits4. The program's stability is partly due to controlled entry and changes in benefits and premiums, as well as enrollee inertia4.
Individual Health Plan Exchange
Research suggests that employees value the ability to choose plans that best suit their needs. A study estimated that employees would forgo 10% to 40% of their employer subsidies for the right to apply those subsidies to a plan of their choosing, highlighting the potential benefits of an individual health plan exchange8.
Retiree Health Benefits
Coverage and Demographics
Approximately 80% of elderly Medicare beneficiaries have private supplemental insurance, with 50% holding medigap or privately purchased coverage9. Employer-sponsored health benefits are common among retirees, with 8.4 million elderly Medicare beneficiaries having such coverage9. Women are more likely to hold medigap plans, while men are more likely to have employment-related coverage9.
Behavioral Health Insurance Parity
Impact on Mental Health and Substance-Abuse Services
The implementation of parity in the Federal Employees Health Benefits (FEHB) Program in 2001 aimed to improve coverage for mental health and substance-abuse services. The policy led to a significant reduction in out-of-pocket spending for beneficiaries in several plans, without increasing total costs, when coupled with managed care10.
Conclusion
The landscape of health plan benefits has evolved significantly over the years, with rising premiums, increased enrollment in high-deductible plans, and a greater emphasis on wellness programs and cost-sharing measures. Employer-sponsored plans continue to play a crucial role, particularly for retirees, while the introduction of behavioral health insurance parity has improved coverage for mental health services. Understanding these trends can help stakeholders make informed decisions about health plan offerings and employee benefits.
Sources and full results
Most relevant research papers on this topic
Health benefits in 2008: premiums moderately higher, while enrollment in consumer-directed plans rises in small firms.
Health benefits in 2008 saw moderate increases in premiums, with 8% of covered workers enrolled in high-deductible plans, and deductibles in preferred provider organizations increasing from 2007.
Observational StudyHealth benefits in 2010: premiums rise modestly, workers pay more toward coverage.
Health benefits in 2010 saw modest increases in premiums and workers contributing more towards coverage, while the percentage of firms offering benefits increased to 69%, driven by a 13-percentage-point increase in firms with three to nine workers offering benefits.
Observational StudyHealth Benefits In 2015: Stable Trends In The Employer Market.
In 2015, average annual health benefits premiums rose 4% from 2014, but the percentage of firms offering benefits and workers covered by plans remained unchanged from 2014.
Observational Study
Highly CitedHealth plan selection in the Federal Employees Health Benefits Program.
The Federal Employees Health Benefits Program exhibits stability due to control over entry, benefits, and premium changes, with only 20% of enrollees switching plans during the 1982 open season, and only 20% switching plans to maintain benefits.
Observational StudyHealth Benefits In 2016: Family Premiums Rose Modestly, And Offer Rates Remained Stable.
In 2016, average annual premiums for single coverage were $6,435 and $18,142 for family coverage, with a 3% increase in family premiums and a stable share of firms offering health benefits and workers covered by plans.
Observational StudyPolicy watch: the Federal Employees Health Benefits Plan.
The Federal Employees Health Benefits Plan (FEHBP) serves as a touchstone for research on employment-based health insurance and as a touchstone for health policy reform.
High-Deductible Health Plans Reduce Health Care Cost And Utilization, Including Use Of Needed Preventive Services.
High-deductible health plans (HDHPs) are associated with lower health care costs due to reduced use of health services, including appropriate services.
Systematic ReviewHighly CitedAn Individual Health Plan Exchange: Which Employees Would Benefit and Why?
Employees would be willing to forgo 10 to 40% of their employer subsidies for the right to apply those subsidies to the health plan of their choosing in an individual health plan exchange.
Observational StudyRetiree health benefits.
Supplemental retiree coverage increases health service use and costs, particularly for those in poorer health, and is often influenced by the employer's commitment to providing benefits.
Behavioral health insurance parity for federal employees.
Implementing parity in insurance benefits for behavioral health care can improve insurance protection without increasing total costs when coupled with care management.
Observational StudyHighly Cited