HR consulting and investment firm Mercer, released a report that found the average deductible for an employer-sponsored PPO health insurance plan is $1,000 for 2008. Last year, the average PPO deductible was half that at $500. In fact, according to the Mercer report, the $500 average held from 2001 to 2007. In 2000, the average was $250.
There are a couple reasons why this is happening. One of them is because of health care costs increasing for employers. Becuase of this, they are relaying more of the costs to the employees with higher premiums and deductibles.
Another reason is the popularity of high deductible consumer directed health plans and Health Savings Accounts being on the rise. 20 percent of large businesses are offering these now. This is, in reality, another form of shifting hte cost down to workers, making them pay higher deductibles and more out of pocket.
That's not to say there aren't advantages to consumer-directed plans and HSAs. You can save money tax-free in an HSA, and you still have major medical coverage in case of emergency.
These kinds of plans are usually better for people who don't require many doctor visits. The end result is, when deductibles rise, our wallets gets tighter. - 16089
There are a couple reasons why this is happening. One of them is because of health care costs increasing for employers. Becuase of this, they are relaying more of the costs to the employees with higher premiums and deductibles.
Another reason is the popularity of high deductible consumer directed health plans and Health Savings Accounts being on the rise. 20 percent of large businesses are offering these now. This is, in reality, another form of shifting hte cost down to workers, making them pay higher deductibles and more out of pocket.
That's not to say there aren't advantages to consumer-directed plans and HSAs. You can save money tax-free in an HSA, and you still have major medical coverage in case of emergency.
These kinds of plans are usually better for people who don't require many doctor visits. The end result is, when deductibles rise, our wallets gets tighter. - 16089
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