Health Insurance Premiums Expected to Rise 6% in 2023 - American Society of Employers - Kevin Marrs

Health Insurance Premiums Expected to Rise 6% in 2023

SurveyASE released its 2022 Healthcare Insurance Benefits Survey.  The annual survey, covering Michigan employers, examines the premiums, deductibles, and co-pays of employer-sponsored health plans as well as wellness benefits and cost control strategies.

Highlights of the ASE 2022 Healthcare Insurance Benefits Survey include:

  • Median premium increases (after plan changes) were up slightly compared to data reported in last year’s study.  According to this year’s sample, median premium increases were just 4% for 2021.  Increases for the 2022 plan year were 5%.  Median increases for 2023 are projected to be 6%.
  • A majority of the participants (63%) reported offering two to three types of health plans.  The most utilized plan type continues to be Preferred Provider Organization Plans (PPO) with 87% of companies offering this option.
  • Just 37% of the sample of participants report self-funding their health plan, down slightly from a year ago.  However, 69% of large companies (those with 500 or more employees) reported being self-funded.
  • New to the survey this year, employers were polled on the prevalence of Opt-Out Incentives for those employees who choose not to elect coverage under the employer-sponsored health plan.  Just a third of employers surveyed offer that benefit.  Annual opt-out incentives averaged $1,824.
  • The three-tiered price structure (generic, preferred brand, non-preferred brand) for prescription drug plans were the most popular among traditional PPOs with 49% of non-unionized organizations reporting this structure, down slightly from a year ago.  Five-tiered structures followed as the second most prevalent option at 31%.  This was an increase of nine percentage points from a year ago.
  • Median annual employer contributions to Health Savings Accounts (HSA) remained unchanged from the last four years with an employee only contribution totaling $500 and an employee + family contribution totaling $1,000 for both union and non-unionized organizations.
  • The number-one strategy that employers planned to implement continues to be increasing education regarding health plan features and costs (14%). Implementing or expanding wellness programs (6%), changing providers (4%), and increasing the employees cost share (5%) top the list of strategies that companies are considering but have yet to set a timeline for.

The ASE 2022 Healthcare Insurance Benefits Survey findings were announced by ASE President and CEO, Mary E. Corrado. “With employee retention top of mind for most employers, they are hesitant to make changes to their health care plans.  Instead, employers continue to meet their cost challenges by educating employees on their health care plan features and being good consumers of health benefits,” stated Mary E. Corrado, ASE President & CEO.

Background information on the ASE 2022 Healthcare Insurance Benefits Survey

187 organizations from across Michigan participated. Organizations with 50 to 499 employees nationally made up more than 56% of the survey sample, while organizations with more than 500 employees nationally represented nearly 31% of the sample. The remaining 13% of the sample came from organizations with fewer than 50 employees nationally.  A variety of industries have been represented in the survey, with durable goods manufacturing (37%) leading the pack. Trades and services (37%) were the second-largest industry representation.

This survey is available at no cost to ASE Member survey participants via the ASE Member Dashboard and is available for $1,650 for non-members and member non-participants.  Request to purchase here.

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