ROSELAND, N.J., April 3, 2014 /PRNewswire/ -- ADP ®, a leading global provider of Human Capital Management (HCM) solutions, today announced the findings of the second-annual ADP Research Institute® report, which highlights significant trends in employer-provided healthcare benefits. Based on five years of actual, anonymous and aggregated health benefits data from U.S.-based companies with 1,000 or more employees going back to 2010, the report provides employers with benchmarks to better gauge the effectiveness of their current strategies and to help plan for changes on the horizon. The first annual report was released in 2013.
The ADP Annual Health Benefits Report: 2014 Benchmarks and Trends for Large Companies highlights the impact that changes such as economic conditions, legislation and workforce demographics have on healthcare benefits. It is intended to provide employers with a valuable baseline for measuring key trends in the years ahead. With these strategic insights, organizations can better build effective benefit strategies for the future.
"It's no secret that employers are looking for ways to reduce health benefits costs, while still offering effective coverage options to employees," said David Marini, vice president and managing director, strategic advisory services at ADP. "In an effort to help reduce costs, employers may use one or more strategies, such as changing the health plan premium tiers or levels of coverage, or reduce the employer's contribution to the coverage of dependents."
Premium increases leveling off Average monthly health plan premiums have increased 15% since 2010, to $870.* However, after a sharp increase of 6.9% from 2010 to 2011, the rate of increase has decelerated. Premiums rose just 1.7% from 2013 to 2014. The report showed that health plan premiums rose for employees of all ages over the period 2010-2014.Employers contributing slightly lessEmployer share of contributions to health premiums declined slightly for all groups from 2010 to 2014, regardless of age or number of dependents. The largest decrease was 1.5% for those with dependents. For those with no dependents, the decrease was 1.0%. Employer contribution decreased across all age groups according to the report's findings. Other key findings of the 2014 ADP Annual Health Benefits Report include: