Your employer-based insurance will cost you more

Your employer-based insurance will cost you more

Employers are shifting health care costs to employees through higher deductibles.

A survey released Tuesday says you are paying more for your health insurance due to employers shifting more of the cost to their employees.

The survey by the Kaiser Family Foundation and cited in an article on, says more employees are paying higher out of pocket expenses because of higher deductibles.  The survey found that even those that were not on high-deductible plans are also finding their deductibles raised.

The foundation surveyed employer-sponsored health care plans, since that is the way most Americans are receiving their health care insurance.

The study pointed out that while deductibles are rising, premium are staying relatively stable.  Deductibles are the amount an individual must spend before insurance money becomes available.

Companies are suggesting the higher-deductible plans to employees because the company can lower their overall health care costs if the employees pay more of the burden.  These type plans are typically selected by younger, healthier employees, because they don’t expect to use insurance that much, and the plan premiums are cheaper.

Higher-deductible plans could interfere with the quality of the health care an individual receives.  Results from an earlier study indicated people are less likely to seek medical care if they are afraid of the high cost, and they are putting off early treatment.  That study recommended further evaluation of the problem, however, as their study was limited.

The average deductible for a individual with single coverage is $1318 per year, compared to $1217 last year.   That number has increased about $400 since 2010.

The number of employees that are covered by a high-deductible plan has risen from 13 percent in 2010 to about 24 percent today.

Employees in small companies are faring the worst, with the average small-company deductible being $1,836, compared to large companies at $1,105.  Sixty percent of all covered workers in small companies have a plan with a deductible of $1,000 or more, and 36 percent of small company employees have deductibles of $2,000 or more.


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