Costs for employer health coverage is set to increase over the next year.
According to the annual health care survey by the National Business Group on Health, we can expect the cost of medical and drug benefits to rise by 5 percent in 2019, making it the sixth year in a row that costs have jumped up at least that much. Next year, premiums and out-of-pocket costs for employees and their dependents would average $14,800 net year. Fortunately, employers continue to cover 70 percent of that tab, on average, with workers picking up the rest.
At first glance, the numbers look like good news. Health care costs aren’t rising at a faster rate than years past, signaling a stabilizing in costs compared to the runaway double-digit increases we saw in the early 2000s. However, when we take a closer look, we find that healthcare accounts for 12 percent of wages, double what it was 30 years ago, without accounting for inflation. Employers said that high-cost claimants, specialty pharmacy and the treatment of specific diseases or conditions (such as cancer or musculoskeletal conditions) were key drivers of the cost increases for 2019.
Many employers across the nation will continue to offer high-deductible plans paired with a health savings account in 2019, although fewer employers plan to offer it at their only option. High-deductible plans have become the most popular insurance option. For 2018, 53 percent of employers said their high-deductible plan had the highest enrollment, while 41 percent said that most employees for a lower-deductible preferred-provider organization (PPO) plan. Only 3 percent said that a health maintenance organization (HMO) plan was the most popular among employees.
The top health care initiative for about half of employers in 2019 will be increasing their virtual care solutions. Almost all of the large employers surveyed already offer telehealth services (where you can have a virtual doctor’s visit for minor services, such as sinus and upper respiratory infections, allergies, and the flu). They plan to add more virtual care for mental and behavioral health services, health and lifestyle coaching, weight management and diabetes care management.
Do you have questions regarding your health insurance? Then don’t hesitate to contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.