Annual Premiums and Employee Costs
Employer-sponsored health insurance covers approximately 157 million people in the United States. In 2020, the average annual premium across all plan types for employee only coverage is $7,470 (a 4% increase from $7,188 in 2019) and $21,342 for family coverage (up 4.2% from $20,576 in 2019). HMO plans had an annual average premium of $7,284 for an employee-only and $20,809 for family coverage. PPO plans were a bit more costly, with an average annual premium of $7,880 for employee only coverage and $22,248 for family coverage. Across all plan types, the average employee contribution was 16.6% for employee only coverage and 26.2% for family coverage. For HMOs, the employee contributions were 16.6% and 25.4% for employee-only and family coverage, and for PPOs the employee contributions were 16.9% and 27% respectively.
Employer Premium Contributions
Small firms (3-199 workers) subsidized employee only coverage at a greater rate than their large firm counterparts (200+ workers). In small firms, 27% of employee only coverage workers were responsible for none of the premium cost. In large firms, just 4% of workers with employee only coverage were responsible for none of the premium costs. However, small firms were less generous in subsidizing the cost of family coverage, with 28% of small firm workers having to contribute over 50% of their family premiums, compared to 4% of workers in large firms having to pay as much. Across all firm sizes, 80% of workers had to pay 25% or less of the employee only premium costs, while 58% of workers paid 25% or less toward family coverage premiums.
Types of Plans Employees Selected in 2020
Employee enrollment in plans that have a savings option, such as an HRA or HSA, increased from 2015 to 2020. On average for all firms, enrollment into those plans was 24% across the board in 2015. In 2020, the enrollment averaged 31% across all firm sizes.
2020 enrollment percentages for each plan type across firm sizes are as follows:
| Firm Size | |||
| Plan Type | Small (3-199) | Large (200+) | All Firms |
| HMO | 11% | 13% | 13% |
| PPO | 45% | 48% | 47% |
| POS | 17% | 5% | 8% |
| HDHP/Savings Option | 25% | 33% | 31% |
Employer-Sponsored Wellness Programs
In 2020, 42% of small firms provided employees the opportunity to complete a Health Risk Assessment, and 33% offered the opportunity to complete a biometric screening. 53% of small firms also offered a program that focused on at least one of these areas: smoking cessation, weight management, and behavioral or lifestyle coaching.
For large firms, 60% offered an opportunity to complete a Health Risk Assessment, 50% provided the opportunity to complete a biometric screening, and 81% offered a program that focused on at least one of the areas listed above.
Also, the availability of telemedicine services increased in 2020, with most smaller firms (50-199 workers) reporting that they cover some services through telemedicine. The growth of these services this year was likely partly due to the coronavirus pandemic and an increased awareness of the low cost and convenience of these online health care services.
If you'd like to review the report, please click here.
Fall River uses this survey in combination with data specific to the Denver/Boulder metro area to provide complimentary benchmarking consultations that help employers compete for talent. These consultations offer insight into how your benefits stack up and give you an edge in your pursuit to attract and retain the top talent in your field.
Interested? Contact us to schedule your free benchmarking consultation today!
