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CCH® BENEFITS — 07/22/11

Small Employer Premium Averages $5,107 Annually For Single Coverage

from Spencer’s Benefits Reports: In 2010, the average premium for small group health care coverage was $426 per month, or $5,107 annually, for single coverage, and $1,117 per month, or $13,409 annually, for family coverage, according to America’s Health Insurance Plans (AHIP). The survey, Small Group Health Insurance in 2010: A Comprehensive Survey of Premiums, Product Choices, and Benefits, included responses from 477,000 employers with fewer than 50 employees.

AHIP found that premiums fell as employer size increased. Firms with ten or fewer employees had average monthly premiums of $446 for single coverage. Firms with 11 to 25 employees paid an average of $419 per month for single coverage. Employers with 26 to 50 employees paid the lowest, $406, per month for single coverage.

Among employees with small group coverage, 68% had a PPO plan in 2010, according to AHIP. Twenty-three percent were enrolled in a health maintenance organization (HMO), and 7% of enrollees had a health savings account (HSA) benefit, with a qualifying high-deductible health plan (HDHP). Health reimbursement accounts (HRA) with a qualifying HDHP and indemnity plans made up the remaining 2% of enrollees.

The survey noted that 24% of small group employees had a choice of two or more benefit plans, and of the workers offered an HSA plan, almost 40% also had a choice of an alternate, usually more traditional, plan. When offered a choice between an HSA and a more traditional plan, 44% of small group employees selected the HSA.

For more information, visit http://www.ahipresearch.org/pdfs/SmallGroupReport2011.pdf.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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