Don’t Forget About Healthcare Deductibles When Selecting Your Health Insurance Policy
As open enrollment season creeps closer, there are many costs to consider when selecting your policy: office visits, prescription drugs, and even percentage of costs that employees are responsible for paying. One area often overlooked is deductibles, or a specified amount of money an insured employee must pay before coverage kicks in. A new study released by the Kaiser Family Foundation reveals that healthcare deductibles are growing faster than wages - that is for the past five years employee wages have increased at a rate that is less than deductible increases. This can be problematic for employees since they may not be able to cover their deductibles to receive medical care. Kaiser Family Foundation’s chief executive said that they are seeing “a steady increase in deductibles and out-of-pocket costs, which (are) now really adding up. It’s a very powerful trend.”
Just how powerful is this trend? The Orange County Register reported that deductible averages were just $900 in 2010 and grew to $1300 just five years later. Small businesses could see rates as high as $1,800 to $2,000.
Higher-deductible plans are presently used as a tool to reduce unnecessary healthcare use, as the costs associated with the plan are a deterrent to seeing a healthcare provider. These plans, however, are not beneficial to the chronically ill or immunocompromised, as passing the cost to these employees with limited wage growth cause significant financial strain.
With Affordable Care Act (ACA) regulations continuing to be enforced and change plans on a yearly basis, taking care of the people who work for you are key. There are significant changes coming to the ACA in 2016, such as reclassification of businesses with 51-99 employees, geographical age banding based on age and zip code, and increased IRS reporting.
As a Professional Employer Organization (PEO), Emplicity is here to help your get better benefits that help your company retain its large-group standing and could reduce the costs your employees face with healthcare. Contact us today at 877-876-2339 or visit www.emplicity.com for more information!