Health Plan Costs & Premium Increases | 2019 UBA Health Plan Survey Trends

Average health plan costs rose a modest 4.6% in 2019, compared to the nearly 10% increase seen in 2018, a ten-year high. Good negotiation is key in securing the best final rates. UBA Partners reported that the average initial or proposed rate increase was 8.6%, with final rate increases averaging 4.6% after negotiation.
Employees, on average, contribute 32.7% toward total plan costs in 2019 versus 31.2% in 2018.

Health Maintenance Organizations (HMOs)

HMOs continue to have the lowest total cost at $9,434, as compared to the total cost of $10,929 for a PPO plan. However, enrollment in HMOs nationwide has remained flat at 8.9%.

Preferred Provider Organizations (PPOs)

Although PPOs continue to cost more than the average plan, they still dominate in both plan prevalence and enrollment. Despite the costs, PPO participation increased 13.3% from 2018 to 2019. Nearly 54% of employees enroll in a PPO plan.

Consumer-Driven Health Plans (CDHPs)

CDHP costs increased 4.7% in 2019, about the same as PPO and HMO plans. Approximately 31% of employees enroll in CDHPs. Beginning in 2018, the UBA Health Plan Survey began examining the underlying networks within CDHPs and found that like last year, CDHP plan enrollment is fairly evenly distributed across network types, indicating that provider networks don’t seem to influence enrollment in these plans. CDHPs with PPO, HMO, POS, or EPO networks had 32.3%, 24.9%, 31.0%, and 32.9% 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.