June 26, 2013
®, a leading provider of employee
healthcare benefits administration
and human capital management services, today announced the findings of a new annual
ADP Research Institute®
report, which highlights significant trends in employer-provided healthcare benefits since 2010. Based on four years of actual anonymous and aggregated health benefits data from the same group of 175 U.S.-based companies with 1,000 or more employees, the report will provide an unprecedented benchmark against which to measure the impact of the Affordable Care Act (ACA) on employer-provided benefits leading up to the implementation of the ACA's Shared Responsibility provisions and the opening of public insurance exchanges in 2014.
ADP Annual Health Benefits Report: 2013 Benchmarks and Trends for Large Companies
brings to light the relative impacts of the initial enacted provisions of the ACA, health plan premium dynamics, changing economic conditions and changing workforce demographics. It is intended to provide employers with strategic insights as they enter into uncharted territory as Health Care Reform is implemented, and to help form a solid foundation upon which organizations can build effective benefits strategies for the future.
"ADP's 2013 Annual Health Benefits Report suggests that younger generations and lower wage workers are facing the greatest healthcare challenges in terms of eligibility and cost, and these are employees that employers will need to carefully consider when designing and communicating their 2014 benefits programs," said
, president of ADP Benefits Administration Services. "In an effort to reduce the risk in their pool of covered workers and potentially reduce costs for the total covered population, employers may choose to extend coverage to employees who were not previously eligible. They may also opt to change the contribution tiers of coverage, adjust part-time/full-time hiring strategies or adjust their contribution to the coverage of dependents. All of these strategies could have far-reaching effects on U.S. businesses, employee compensation and the overall economy."
Other key findings of the
2013 ADP Annual Health Benefits Report
Health Plan Premiums Rising – But Moderating
The average monthly premium rose approximately 14% from 2010 to 2013. However, after a spike of nearly 8% between 2010 and 2011, the rate of increase moderated. Premiums rose approximately 3% in the last year. In 2013, the average monthly health plan premium was
. While health plan premiums rose for employees of all ages, the steepest increase was among those under 30.
Young Workers Less Likely to Be Eligible for and Enroll in Health Plans
Between 2010 and 2013, the percentage of full-time employees who were eligible** for employer-provided health benefits remained relatively steady at an average of 88%, and participation rates*** remained stable at an average of 65%. Although health benefits eligibility has declined slightly in every age group since 2010, younger workers faced the largest decrease, which may indicate that jobs taken by younger people were less likely to offer health benefits. When employees under age 30 were offered benefits, however, only half participated in their employer's health benefits program in 2013. The ability to obtain health coverage through a parent's health plan up to age 26 may be a partial explanation for this phenomenon.