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STATISTICAL BRIEF #513:
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July 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jessica Vistnes, PhD, G. Edward Miller, PhD and Patricia Keenan, PhD |
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Highlights
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IntroductionEmployer-sponsored insurance (ESI) is the primary source of health insurance coverage for individuals under age 65. This Statistical Brief uses data for private-sector establishments in the Medical Expenditure Panel Survey-Insurance Component (MEPS-IC) to describe trends in employer coverage, premiums, and deductibles from 2008 to 2017. The MEPS-IC is an annual survey of private employers and state and local governments and is designed to be representative of all 50 states and the District of Columbia.This Brief describes trends and patterns in ESI for private-sector employees, overall and by three firm size categories (employees in establishments in firms with fewer than 50 employees (small firms), 50 to 99 employees (medium-sized firms), and 100 or more employees (large firms)). All differences discussed in the text are at the 0.05 significance level, or better. All dollar estimates are nominal (not adjusted for inflation). |
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FindingsEnrollment rates and number of covered employeesFrom 2016 to 2017, there was no significant change in the overall percentage of private-sector employees covered by a health insurance plan offered by their employers (the “enrollment rate”) and no significant change in the enrollment rates at small (fewer than 50 employees), medium-sized (50 to 99 employees), or large firms (100 or more employees) (figure 1). In 2017, 59.9 million private-sector workers were enrolled in a health insurance plan offered by their employers, with 8.9 million enrollees in small firms, 4.1 million in medium-sized firms, and 46.9 million in large firms (figure 2). In 2017, the enrollment rate for all private-sector employees was 47.7 percent, but was 26.7 percent at small employers, 45.0 percent at medium-sized employers and 56.5 percent at large employers (figure 1). Enrollment rates were lower at smaller (fewer than 100 employees) employers than at large employers throughout the 2008 to 2017 time period, mainly due to lower offer rates (figure 3). Offer rates There was no significant change in the overall percentage of employees working at establishments that offered insurance (“the offer rate”) between 2016 (84.3 percent) and 2017 (84.5 percent) (figure 3). Offer rates at small firms (with fewer than 50 employees), medium-sized firms (with 50 to 99 employees), and large firms (with 100 or more employees) were 48.3 percent, 86.3 percent, and 98.9 percent, respectively. These percentages were not statistically different from the 2016 values. Over the longer term, however, offer rates at small firms declined from 61.6 percent in 2008 to 48.3 percent in 2017. Eligibility rates The overall eligibility rate for employees at private-sector establishments that offered insurance did not change significantly between 2016 (76.5 percent) and 2017 (76.8 percent) and also did not change significantly for small, medium-sized, or large employers (figure 4). Overall eligibility rates in each year from 2014 through 2017 were lower than eligibility rates in any year from 2008 to 2013. Take-up rates The overall take-up rate did not differ significantly from 2016 (73.3 percent) to 2017 (73.5 percent), remaining at its lowest level in the 2008 through 2017 period (figure 5). Take-up rates at small, medium-sized, and large firms also did not differ significantly from their 2016 levels. Overall take-up rates, as well as those in the three firm-size categories, were about 5 to 6 percentage points lower in 2017 than in 2008. Premiums In 2017, average health insurance premiums for enrollees in private-sector employer plans were $6,368 for single coverage (figure 6), $12,789 for employee-plus-one coverage (figure 7), and $18,687 for family coverage (figure 8), representing increases over 2016 levels of 4.4 percent for single coverage and 5.5 percent for employee-plus-one coverage and family coverage (figure 9). The 2016 to 2017 growth rates for single and employee-plus-one premiums (4.4 percent and 5.5 percent, respectively) were higher than the growth rates from 2014 to 2015 and 2015 to 2016 (between 2.2 percent and 2.7 percent) (figure 9). The 2016 to 2017 growth rate for family premiums (5.5 percent) was higher than the growth rate from 2015 to 2016 (2.2 percent). Employee premium contributions Average employee contributions to health insurance premiums in 2017 were $1,415 for single coverage (figure 10), $3,531 for employee-plus-one coverage (figure 11), and $5,218 for family coverage (figure 12). From 2016 to 2017, average employee contributions for single, employee-plus-one, and family coverage increased by 6.8 percent, 4.6 percent, and 5.3 percent, respectively (data not shown). The increase in the average employee contribution for family coverage was larger in small firms (20.0 percent) than in large firms (3.7 percent), raising small firms’ average employee premium contribution to a level that was not statistically different from that in large firms in 2017. Deductibles The overall percentage of enrollees in a health insurance plan with a deductible increased from 2016 (84.5 percent) to 2017 (87.5 percent), primarily due to an increase in large firms (from 85.2 percent to 88.8 percent) (figure 13). From 2008 to 2017, the overall percentage of enrollees with a deductible increased from 70.7 percent to 87.5 percent. Among enrolled employees in single-coverage plans with deductibles, average individual deductibles rose overall from $1,696 in 2016 to $1,808 in 2017 (an increase of 6.6 percent), and also rose in large firms from $1,558 to $1,681 (an increase of 7.9 percent) (figure 14). Average family deductibles rose overall from $3,069 in 2016 to $3,396 in 2017 (an increase of 10.7 percent), and also rose in small and large firms (figure 15). Average individual deductibles were higher in small ($2,136) and medium-sized firms ($2,361) than in large firms ($1,681) in 2017. Family deductibles were also higher in small ($4,447) and medium-sized firms ($4,218) than in large firms ($3,195) in 2017. |
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Data SourceThis Statistical Brief summarizes data from the 2008 through 2017 MEPS-IC. The data are available on the MEPS Web site at https://www.meps.ahrq.gov/mepsweb/survey_comp/Insurance.jsp or have been produced using special computation runs on the confidential MEPS-IC data available at the U.S. Census Bureau. |
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DefinitionsSingle coverageSingle coverage is health insurance that covers the employee only. Employee-plus-one coverage Employee-plus-one coverage is health insurance that covers the employee and one other family member at a lower premium level than family coverage. If premiums differed for employee-plus-spouse and employee-plus-child coverage, information for employee-plus-child coverage was collected. Family coverage Family coverage is health insurance that covers the employee and one or more family members (spouse and/or children as defined by the plan). For the MEPS-IC survey, family coverage is any coverage other than single and employee-plus-one. Some plans offer more than one rate for family coverage, depending on family size and composition. If more than one rate is offered, survey respondents are asked to report costs for a family of four. Enrollment rate The enrollment rate is the percentage of all employees enrolled in their employer’s health insurance at establishments both offering and not offering health insurance. Offer rate The offer rate is the percentage of employees who work at establishments that offer health insurance. Eligible employees Eligible employees are those that are allowed to enroll in employer-sponsored coverage offered by their employer. Common eligibility criteria include a minimum number of hours worked per pay period or a minimum length of service with the employer. Employee An employee is a person on the actual payroll. This definition excludes temporary and contract workers but includes the owner or manager if that person works at the firm. Establishment An establishment is a single physical location of a business. Health insurance plan A health insurance plan is an insurance contract that provides hospital and/or physician coverage to an employee for an agreed-upon fee (premium) for a defined benefit period. Take-up rate The take-up rate is the percentage of eligible employees who enroll in health insurance coverage through their employer at establishments that offer insurance. Deductible A deductible is a fixed dollar amount during the benefit period—usually a year—that an insured person pays before the insurer starts to make payments for covered medical services. The MEPS-IC collects information on deductibles for single and family coverage. |
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About MEPS-ICThe MEPS-IC is a survey of private-sector business establishments and state and local governments that collects information on employer-sponsored health insurance, such as whether insurance is offered, enrollments, types of plans, and premiums. The survey is conducted annually by the U.S. Census Bureau under the sponsorship of the Agency for Healthcare Research and Quality (AHRQ). A total sample of approximately 42,000 private-sector establishments was selected for the 2017 survey, with 5.4 percent of the sample determined to be out-of-scope during the data collection process. The response rate for the private sector was 65.8 percent of the remaining in-scope sample units. |
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Suggested CitationVistnes, J., Miller, G.E., and Keenan, P. Results from the 2017 MEPS-IC Private-Sector National Tables. Statistical Brief #513. July 2018. Agency for Healthcare Research and Quality, Rockville, MD. https://meps.ahrq.gov/mepsweb/data_files/publications/st513/stat513.shtml |
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AHRQ welcomes questions and comments from readers of this publication who are interested in obtaining more information about access, cost, use, financing, and quality of health care in the United States. We also invite you to tell us how you are using this Statistical Brief and other MEPS data and tools and to share suggestions on how MEPS products might be enhanced to further meet your needs. Please email us at MEPSProjectDirector@ahrq.hhs.gov or send a letter to the address below: Joel Cohen, PhD, Director Center for Financing, Access, and Cost Trends Agency for Healthcare Research and Quality 5600 Fishers Lane, Mail Stop 07W41A Rockville, MD 20857 |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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Source: Center for Financing, Access, and Cost Trends, AHRQ, Medical Expenditure Panel Survey-Insurance Component, private-sector establishments, 2008–2017. |
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