By Richard Asinof
KANSAS CITY, Kan. – The 2012 Compensation Data Healthcare survey results reported the average annual cost of insurance per employee on a health care employer-sponsored preferred provider organizations, or PPO plan is $8,707, an increase of about 28 percent in three years from the $6,807 average annual cost reported in 2009.
The results found 92.8 percent of health care employer sponsored PPO plans include a deductible or co-insurance requirement for services. The average deductible on an employee only PPO plan is $854, compared to $1,838 for an employee plus family plan. The average in-network out-of-pocket maximum on an employee plus family PPO plan is $6,631.
“Although PPO plans are still the most commonly offered medical plans among healthcare employers, high-deductible health plans are beginning to make headway as employers attempt to contain rapidly increasing medical costs,” said Amy Kaminski, director of marketing for Compdata Surveys. “The high deductible requirement translates to lower overall premium costs, making them more affordable for employers to offer.”
The use of consumer driven health plans is on the rise as well, the survey found. These plans often pair an HDHP medical plan with a spending account, which can be used by the covered employee for their medical expenses. Health Savings Accounts (HSA) with an HDHP is the most common of these plans, as they are used by 23.7 percent of survey respondents. HSA contributions are made either by the employer or the employee and any unused balance can be carried forward.