An HR consultant firm, Mercer, shed some light on a recent finding. The current deductible average for company sponsored PPOs is $1000. That is twice what it was last year. And from 2001-2007 it remained steady at $500, before that it was $250 in 2000.
It is being said the reasons are due to a few key point. One was that health care costs for employers has increased by 6 percent within the past four years. This is resulting in the businesses across the country putting more of the cost of deductibles and premiums onto the workers.
Another was the increasing popularity of high-deductible consumer-directed health plans and Health Savings Accounts (HSAs). Such plans are now offered by 20 percent of large businesses. Really, though, this is another way of cost shifting to employees. Higher deductibles and HSAs mean workers pay for more of their own health care costs out-of-pocket.
That's not to say there aren't advantages to consumer-directed plans and HSAs. You can save money tax-free in an HSA, and you still have major medical coverage in case of emergency.
But these plans are generally best for those who don't often need care. The bottom line, though, is that as deductibles go up, wallets get thinner. - 15224
It is being said the reasons are due to a few key point. One was that health care costs for employers has increased by 6 percent within the past four years. This is resulting in the businesses across the country putting more of the cost of deductibles and premiums onto the workers.
Another was the increasing popularity of high-deductible consumer-directed health plans and Health Savings Accounts (HSAs). Such plans are now offered by 20 percent of large businesses. Really, though, this is another way of cost shifting to employees. Higher deductibles and HSAs mean workers pay for more of their own health care costs out-of-pocket.
That's not to say there aren't advantages to consumer-directed plans and HSAs. You can save money tax-free in an HSA, and you still have major medical coverage in case of emergency.
But these plans are generally best for those who don't often need care. The bottom line, though, is that as deductibles go up, wallets get thinner. - 15224
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