2011 Employer Based Health Insurance Trends

The California HealthCare Foundation (CHCF) released their 2011 California Employer Health Benefits Survey this month presenting employer-based coverage trends in California.  The report reflects the continued challenge California employers encounter as they strive to offer comprehensive employee benefit programs while meeting budget targets.

The research that tracks changes in the state over time included the following findings:

• Premiums were higher in California than nationally for both single and family coverage.  However, the employer contribution in California was significantly higher than the national average.
• Workers in small firms in California were significantly more likely to cover at least half of the premium for family coverage than workers in large firms.
• Twenty-five percent of California firms either reduced benefits or increased cost sharing for employees in the past year, while 22% increased employees' share of the premium (compared to 15% in 2010).
• Since 2002, premiums rose 153.5%, more than five times the 29.3% increase in California's inflation rate.

In an effort to address both the employee needs and budget restraints, employers must be proactive in the strategic management of their employee benefits program.  Through the consideration of industry benchmark standards and the implementation of innovative contribution and benefit strategies, a multi-year plan can be customized for any employer that meets the needs of the organization while positively supporting employees.