The median in-network deductible on an employer-sponsored PPO health plan increased 50 percent, from $1,000 to $1,500 in 2016, yet employer costs remain steady, according to the newly released 2016 Health Plan Survey from United Benefit Advisors, the nation's largest independent survey of employer-sponsored benefits. Despite these significant deductible increases, nearly half of all employees continue to enroll in PPO plans, finds UBA.
The survey shows that average health plan costs for employers actually decreased slightly from $9,736 in 2015 to $9,727 in 2016 while the employees' share increased as they continue to accept lower coverage levels. Of the $9,727, employees contributed an average of $3,378 and employers contributed on average $6,350, whereas in 2015, employers paid $6,403 of the $9,736 average overall cost, while employees paid $3,333.
"Overall, employer costs remained consistent because they are passing more and more of their increases on to employees -- a trend we expect to see more of in the future," says Les McPhearson, CEO of UBA. "Employers simply cannot continue to absorb unsustainable increases in health care costs. Unfortunately, neither can employees."