Guest Article

(From the March 19, 2012 issue of Deloitte's Washington Bulletin, a periodic update of legal and regulatory developments relating to Employee Benefits.)

Bureau of Labor Statistics Tracks Employment-Based Health Benefits

A recently released report from the Bureau of Labor Statistics reveals employers provided health coverage for 55 percent of American individuals in 2010. Public sources (mostly Medicare and Medicaid) covered 31 percent of individuals, while 16 percent were uninsured.

At the same time, almost 10 percent of individuals were covered through the direct purchase of insurance. These figures total more than 100 percent due to the fact that individuals had more than one type of coverage during the year.

The report, Tracking Employment-Based Health Benefits in Changing Times, discloses that the employer's cost for providing health benefits to workers in private industry has nearly doubled in just over a decade. When expressed on a per-hour-worked basis, employer costs have increased from $1.16 in 2001 to $2.12 in 2011. Since 2004, the percentage of the premium paid by employers for family coverage has remained fairly constant at around 70 percent, while the percentage paid by employers for single coverage has decreased from 82 to 76 percent during the same period 2004 to 2011.

Most employer-sponsored plans are preferred provider organizations (62 percent in 2010) and health maintenance organizations (24 percent in 2010). Interestingly, the report reveals that high deductible health plans, despite their relatively new existence, account for 15 percent of the enrollment in employer-sponsored health plans (with a median deductible of $1,600).

As the report explains, the BLS is the principle Federal agency charged with reporting labor market activity. It disseminates statistical information on employer costs for health care benefits, and reports on plan features, access and participation. The report notes that, with the implementation of the Patient Protection and Affordable Care Act, the National Compensation Survey (on which the BLS relies to measure the incidents and costs of employment-related health insurance) will have to refine its concepts, definitions and information collection procedures to adapt to new cost structures and plan types. Among other matters, the NCS will need to determine how to ascertain the detailed provisions of the plans selected by the employees, and whether an employee who purchases coverage through an Exchange with funds provided by the employer is considered to have employer-provided coverage.

The information in this Washington Bulletin is general in nature only and not intended to provide advice or guidance for specific situations. If you have any questions or need additional information about articles appearing in this or previous versions of Washington Bulletin, please contact: Robert Davis 202.879.3094, Elizabeth Drigotas 202.879.4985, Mary Jones 202.378.5067, Stephen LaGarde 202.879-5608, Erinn Madden 202.220.2692, Bart Massey 202.220.2104, Tom Pevarnik 202.879.5314, Sandra Rolitsky 202.220.2025, Deborah Walker 202.879.4955. Copyright 2012, Deloitte.