Health Plan Costs and Premium Increases | 2018 UBA Health Plan Survey Trends

Average health plan costs continue to rise, with 2018 premium increases at the highest level in the last decade. The average initial or proposed rate increase reported for 2018 was 13.9%, with final rate increases averaging 9.8% after negotiation. Initial analysis indicates that employees bore the majority of those increases, particularly those enrolled in PPO plans, with the average cost for employees increasing by 6%. Employers, on the other hand, increased their contributions by 3.1% of the premium increases for PPO plans, on average.

HMOs (Health Maintenance Organizations)

HMOs continue to have the lowest total cost at $9,307, as compared to the total cost of $10,700 for a PPO plan. Enrollment in HMOs increased 55.7% over the past year.

PPOs (Preferred Provider Organizations) 

PPOs continue to cost more than the average plan, however while they still dominate in plan prevalence and enrollment, PPO participation declined 9.7% from 2017 to 2018.

CDHPs (Consumer-Driven Health Plans) 

While CDHP rates have increased at a slower pace than some of the other types of plans over the last several years, the increases in these plans appear to be normalizing and falling in line with the other types of plans. From 2017 to 2018, enrollment in CDHPs increased by 8.3%. For the first time, the UBA Health Plan Survey also examined the underlying networks within CDHP plans and found that CDHP plans with a PPO network had 33.9% enrollment, while CDHP plans with HMO, POS, or EPO networks had 25.1%, 31.7%, and 33.7% enrollment rates, respectively.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.