Costs by Organization Size | 2019 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. After experiencing a stunning 9.6% increase last year, employers with 1,000+ employees were able to more characteristically negotiate better rates this year, achieving a 4.9% decrease in costs.
Hardest hit this year were middle market employers (500-999 employees), who saw a 6.4% increase in costs and now have the most expensive plans across all organization sizes. Though small groups faced 4.2% increases last year when rate protection strategies such as grandmothering were no longer a source of relief in some states, this year on average their rates remained flat (despite having to comply with age and community rating, which drives costs higher), largely due to plan design choices, most notably raising deductibles, increasing employees’ share of premium, and adding more tiers to prescription drug plans.
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.
