Employer Health Benefits Survey 2007 Section 8: High-Deductible Health Plans with Savings Option (Page 2)

Employer Health Benefits 2007 Annual Survey

Section 8:

Section 8: High-Deductible Health Plans with Savings Option (Page 2)

Error in element (see logs)

Click here to return to the previous page

Premiums

Average annual premiums for HDHP/HRAs are $3,894 for single coverage and $11,492 for family coverage (Exhibit 8.4). The HDHP/HRA premium amount for covered workers with single coverage is lower than the average single premium for workers in plans that are not HDHP/SOs (Exhibit 8.5).
Average annual premiums for HSA-qualified HDHPs are $3,826 for single coverage and $9,666 for family coverage (Exhibit 8.4). These premium amounts are lower than the average single and family premiums for plans that are not HDHP/SOs (Exhibit 8.5).

Worker Contributions to Premiums

The average annual worker premium contributions for HDHP/HRAs are $617 for single coverage and $3,113 for family coverage (Exhibit 8.4). The differences between these amounts and the average premium contributions for plans that are not HDHP/SOs for single and family coverage are not statistically significant (Exhibit 8.5).
The average annual worker premium contributions for HSA-qualified HDHPs are $413 for single coverage and $2,564 for family coverage (Exhibit 8.4). These premium contribution amounts are lower than the average single and family contributions paid by workers in plans that are not HDHP/SOs (Exhibit 8.5).

Employer Contributions to Premiums and Savings Options

Employers contribute to HDHP/SOs in two ways: through their contributions toward the premium for the health plan and through their contributions (if any in the case of HSAs) to the savings account option (i.e., the HRAs or HSAs themselves).
- Looking just at annual employer contributions to the premiums for HDHP/SOs, covered workers in HDHP/HRAs on average have employer contributions of $3,277 towards the premium for single coverage and $8,379 towards the premium for family coverage (Exhibit 8.5). The average amount contributed by employers for single coverage in HDHP/HRAs is lower than average amount contributed by employers for single coverage for health plans that are not HDHP/SOs.
- Covered workers in HSA-qualified HDHPs on average have employer contributions of $3,412 towards the premium for single coverage and $7,102 towards the premium for family coverage (Exhibit 8.5). The average amount contributed by employers for family coverage in HSA-qualified HDHPs is lower than average amount contributed by employers for family coverage for health plans that are not HDHP/SOs.
On average, workers enrolled in an HDHP/HRA receive an annual employer contribution to their HRA of $915 for single coverage and $1,800 for family coverage. Workers enrolled in HSA-qualified HDHPs on average receive an employer contribution to their HSA of $428 for single coverage and $714 for family coverage (Exhibit 8.5). There are important caveats, however, for interpreting these averages.
- In looking at employer contributions to HRAs, it is important to note that some HRAs are structured in such a way that employers may not actually spend the whole amount that they make available to their employees’ HRAs.⁴ Amounts committed to an employees’ HRA that are not used by the employee generally roll over and can be used in future years, but any balance may revert back to the employer if the employee leaves his or her job. Thus, the employer contribution amounts to HRAs that we capture in the survey may exceed the amount that employers will actually spend.
- In looking at employer contributions to HSAs, it is important to note that not all employers make contributions towards HSAs established by their employees. Almost two-thirds (66%) of employers offering single coverage through HSA-qualified HDHPs do not make contributions towards the HSAs that their workers establish (covering 47% of covered workers enrolled in HSA-qualified HDHPs for single coverage). For family coverage in HSA-qualified HDHPs, about 47% of employers offering family coverage through HSA-qualified HDHPs do not make contributions to the HSAs established by their employees (covering about 45% of workers covered by such plans).⁵ The averages that we show include the large portion of covered workers whose employer contribution to the HSA is zero. When those firms that do not contribute to the HSA are excluded from the calculation, the average employer contribution for covered workers is $806 for single coverage and $1,294 for family coverage.
Employer contributions to savings account options (i.e., the HRAs and HSAs themselves) for their employees can be added to their health plan premium contributions to calculate total employer contributions toward HDHP/SOs.
- For HDHP/HRAs, the average total employer contribution for covered workers is $4,192 for workers with single coverage and $10,179 for workers with family coverage (Exhibit 8.5). The average total employer contribution amount for single and family coverage in HDHP/HRAs is higher than the average amount that employers contribute towards single and family coverage in health plans that are not HDHP/SOs.
- For HSA-qualified HDHPs, the average total employer contribution for covered workers is $3,840 for workers with single coverage and $7,815 for workers with family coverage (Exhibit 8.5). The average total employer contribution amount for family coverage in HSA-qualified HDHPs is lower than the average amount that employers contribute towards family coverage in health plans that are not HDHP/SOs.

Click here to continue on to the next page

⁴ In the survey, we ask firms, “Up to what dollar amount does your firm promise to contribute each year to an employee’s HRA?” We refer to the amount that the employer commits to make available to an HRA as a contribution for ease of discussion. As discussed, HRAs are notional accounts, and employers are not required to actually transfer funds until an employee incurs expenses. Thus, employers may not expend the entire amount that they commit to make available to their employees through an HRA.

⁵ The differences in percentages between single and family coverage occur because some employers report offering single but not family coverage.

For more information regarding survey methodology, click here to view the Survey Design and Methods section.

The Kaiser Family Foundation and Health Research and Educational Trust
Program Area: Health Care Marketplace Project | Publication Date: 09/11/2007