Survey Captures Deepening Pinch Of Health Care Costs

Average Monthly Premium for Single Coverage Higher in Massachusetts Than Nationally

About two-thirds of businesses in Massachusetts offered health insurance this year, higher than the national rate of 54%, and a significant number of companies are only offering high deductible health plans that come with lower premiums but higher out-of-pocket costs, according to a new survey.

The state Center for Health Information and Analysis survey was in the field from April through September and also found that among firms offering insurance, 71% offered at least one high deductible health plan. Fifty-six percent of small firms and nearly a third of large firms offered HDHPs exclusively.

The biennial survey concluded that among the 34% of firms that offered HDHPs with an accompanying savings option — health reimbursement arrangement (HRA) or health savings account (HSA) — firms contributed an average of $1,916 annually to HRAs and $630 to HSAs for single coverage, and $3,480 and $1,255, respectively, for family coverage.

On the cost front, more employees are absorbing new insurance costs and average premiums here are higher than nationally.

Employees in Massachusetts contributed a larger share of the premium than their national counterparts (24% percent vs. 15%) with lower average annual deductibles ($1,354 vs. $1,787). Nearly a quarter of firms reported having increased member cost-sharing in the past 12 months to manage rising costs.

The average monthly premium for single coverage was higher in Massachusetts ($789) than nationally ($746).