Aug 02, 2018
Last year, 25% of employers increased cost sharing for California workers, and 4% reduced benefits, according to a recent study by the California Health Care Foundation and the University of Chicago. The study looks at workers with employer health coverage. The trend is likely to accelerate with 37% of employers saying that they are at least somewhat likely to increase the workers’ share of premiums. Larger employers are more likely to consider increasing the employees’ share. Twenty-eight percent of California employers are considering increasing employees’ deductibles, and 15% are considering increasing the employees’ share of prescriptions, copays, or coinsurance.
Plan Types
Thirty-nine percent of employers that offered an HDHP with a savings option moved their benefit options to an HRA or HSA last year. California workers are significantly less likely to have an HDHP/savings option compared to workers nationally. However, in 2017, 13% of California workers enrolled in high deductible health plans, which is more than double what it was in 2009. The national percentage more than tripled. Seventy percent of covered California workers had an HMO option, compared to 33% nationally.
Prescription Drugs
In 2017, 59% of California workers had a three- or four tier prescription drug cost-sharing formula, compared to 84% nationally. With four-tier prescription cost sharing, average generic drug copayments are less than half of what they are for preferred drugs, and a quarter of what they are for non-preferred drugs. Twenty-one percent of California workers had a four-tier formula compared to only 1% in 2009. Contact your LISI Regional Sales Manager to find out how to take advantage of employee benefit trends in California.
