Employee-sponsored family health care premiums are up 3 percent in 2014, employer survey says

Employer-sponsored family health care premiums have increased 3 percent this year over last year, with workers paying an average of $4,823 annually, says the Kaiser Family Foundation/Health Research & Educational Trust 2014 Employer Health Benefits Survey released on Wednesday. More than 2,000 small and large employers participated in the survey, which found that annual premiums for worker-only coverage are $6,025 this year, and workers on average contribute $1,081 toward worker-only coverage.

Deductibles are on the rise. The average deductible has increased 47 percent since 2009, from $826 to $1,217. "This year, 41 percent of all covered workers face an annual deductible of at least $1,000, including 18 percent who face a deductible of at least $2,000," says Kaiser. "Covered workers at small firms (three to 199 employees) are even more likely to face large deductibles, with 61 percent facing at least $1,000 deductibles and a third (34 percent) facing at least $2,000 deductibles." (Kaiser graphic)

Co-payments have remained stable, averaging $24 for primary care, $36 for specialists, $11 for generic prescriptions, $31 for preferred brands, $53 for non-preferred brands and $83 for specialty drugs.

Most employers offer wellness programs—98 percent of large employers and 73 percent of smaller ones—with 36 percent of those large employers and 18 percent of those smaller employers providing employees who participate financial incentives, such as a lower premium or deductible, a larger contribution to a tax-preferred savings account, or a gift card, cash or merchandise.

"Starting next year, employers with at least 100 full-time equivalent workers could face penalties if they do not offer health benefits and their workers obtain subsidized coverage through the new health insurance exchanges," says Kaiser. "The survey finds the vast majority (94 percent) of employers with at least 100 workers already offer health benefits to at least some of their workers. In 2016, employers with at least 50 workers will be subject to these penalties."

"Among employers with fewer than 50 workers, 52 percent offer health benefits," says Kaiser. "Since most employers nationally are small, this group drives the overall offer rate for employers, which stands at 55 percent this year, similar to the 57 percent recorded last year. Firms that do not offer health benefits to their workers most often cite cost-related reasons, though one in 10 cite the coverage available to workers through the ACA insurance exchanges as a factor." (Read more)