Costs by Organization Size | 2018 UBA Health Plan Survey Trends
Generally, larger groups (those with 200 to 1,000+ employees) pay more than average per employee due to more generous benefit levels. Despite these employers’ ability to negotiate better rates (and the fact that, unlike small groups, they are not required to comply with age and community rating, which drives costs higher), most large employers still saw larger increases this year (after a year of relatively flat costs from 2016 to 2017). Hardest hit were employers with 1,000+ employees, who saw on average a 9.6% increase over 2017 (from $10,346 to $11,339). For the last few years, small groups obtained refuge from rate increases with grandmothering and plan design choices (reducing prescription drug coverage, and turning to lower-cost CDHP and HMO plans). But those strategies were not a source of relief in 2018, with most small employers experiencing an average 4.2% increase in costs.
Most Expensive Plans
- PPO and EPO plans
- Plans in the Northeast
- Plans in the Government/Education industry
- Plans among large employers (1,000+ employees)
Least Expensive Plans
- HMO Plans
- Plans in the Central U.S.
- Plans in the Hospitality industry (hotel, food)
- Plans among small employers (25-49 employees)
As a member of United Benefit Advisors, we can provide you with data from the nation’s most comprehensive benchmarking survey of health plans — the UBA Health Plan Survey. By using this data, we can help you more accurately evaluate costs and contrast your current benefit plan’s effectiveness against other companies’ plans by industry, size and region — giving you a distinct competitive edge in recruiting and retaining a superior workforce. Armed with this vital information, we can help you craft a superior benefits package that supports your strategic and financial goals.
