PPO Insurance Deductible Rise From $700 In 2005 To $1200 In 2010
The average PPO insurance deductible has risen from $700 in 2005 to $1,200 in 2010. This is affecting many employer provider health plan. The cost of health benefits has risen 6.49 percent in 2010. Companies will spend on the average of 5.8 percent more on employee health care in 2011. An average of 2 percent of that increase is pegged to provisions of the health car overhaul law.
Enrollment in high-deductible, account-based Consumer Directed Health Plans (CDHP) continues to rise. CDHP enrollment increased by two percentage points each year since 2006. CDHP enrollment increased the most in 2010 among the largest employers, those with 20,000 or more employees – a group that tends to set trends for other employers. Over half of these employers offered a CDHP in 2010 – 51%, up sharply from 43% last year. Enrollment rose even faster, swelling from 9% to 15% of covered employees.
With the cost of HSA-based CDHP coverage about 25 percent lower ( around $6,759 per employee ) than the cost of PPO Insurance Plans, CDHP is becoming more attractive. However HMO cost about $100 more per employee causing more people to move from HMO coverage to PPO