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UBA Survey: Public Employer Annual Health Plan Costs Increases at Double the Rate of Private Sector in 2013
Date:12/18/2013

Indianapolis, Indiana (PRWEB) December 18, 2013

United Benefit Advisor’s 2013 Health Plan Survey, the nation’s largest independent health plan benchmarking survey, reveals that while private sector employees are absorbing more costs for their own health care, facing high deductibles and huge out-of-pocket cost increases in recent years, they are also bearing more as taxpayers by assuming a higher percentage of costs for employees who work in the public sector.

The survey finds that public employer cost per employee increased 22 percent from $7,001 in 2012 to $8,551 in 2013, while employer cost in the private sector increased only 15.8 percent from $5,226 in 2012 to $6,040 in 2013. The portion an employee pays decreased for both during that same time period, but by nearly 30 percent (or $1,025) for a public worker and only 15.7 percent for a private worker. Taxpayers, therefore, assumed an additional $1,681 or 24.28 percent of a public employee’s health care cost.

Findings from the comprehensive survey of more than 11,000 employers show that the private sector has controlled costs better than public employers by using plan designs that shift more up-front cost to a strategy proven to decrease total cost. Such plans, known as consumer-driven health plans (CDHPs), grew from 22.5 to 24.1 percent of all plan types offered across all industries and size groups. A majority of public plans, however, are still considered “Cadillac plans,” rich in costly benefits that have been stripped from most private plans -- putting the public sector at risk of facing the forthcoming “Cadillac Tax.”

Under the Patient Protection and Affordable Care Act (PPACA), plans that cost more th
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