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2019 Iowa Employer Benefits Study©
Employers Report 7.1% Increase in Health Premiums

Today, we issued our 20th Iowa Employer Benefits Study© results. As with past studies, the wealth of data is immense. This year’s study found that Iowa employer health insurance premiums increased an average of 7.1 percent from 2018 to 2019.

The 7.1 percent increase is an average that factors in employers receiving no rate change, an increase or decrease in their health premiums. This number represents the average increase in premiums employers received PRIOR to making design changes to their medical plans – such as increasing cost-sharing arrangements with employees.

The 2019 Iowa Employer Benefits Study© found that average annual premiums for employer and employee contributions (combined) were $7,017 for single coverage and $19,335 for family coverage. Since 1999, the year this study began, the single premium has increased by 240 percent while the family premium has jumped by 251 percent. (NOTE: In a number of slides below, the year 2017 was excluded because no survey was performed.)

During the post-ACA period (2011-2019), total family premiums increased by 45.4 percent, while employees with family coverage experienced a 30.5 percent increase to their payroll-deducted premiums. Employers continue to make sizeable contributions to keep the employee cost ‘manageable.’ This information is depicted in the following graph.

How did Iowa employers respond? They continue to ratchet up employee cost-sharing arrangements by increasing employee premium contributions and plan-sharing responsibilities, which results in higher deductibles and out-of-pocket maximums.

For the first time in this study’s history, employers were asked to gauge their ‘cost-shifting fatigue.’ On a 10-point scale, where 1 means the employer has a minimum cost-shifting fatigue and 10 means the employer has reached its limit of shifting costs to employees and is now considering to no longer offer health coverage, Iowa organizations reported their fatigue level was 3.5 out of 10. Despite experiencing rate hikes for years, Iowa employers are not yet likely to discontinue offering health coverage. Below is a slide that depicts employer responses by employee-size categories.

Iowa employees were asked to contribute an annual average of $1,313 for employee-only coverage, while employees with family members were asked to pay $5,794 annually. Over the course of 20 years (1999-2019), employee contributions have increased by 196 percent for single coverage and 173 percent for family coverage.

The overall 2019 statewide weighted-average deductible for single coverage is now $2,192, while the family weighted-average is $3,975. Since 2004, deductibles for both single and family have risen by 288 percent and 235 percent, respectively.

The post-Affordable Care Act (ACA) period (2011-2019) reveals the deductibles continue to climb for both single and family coverages, approximately 46 percent and 25 percent respectively.

In addition to revealing updated results for dental coverage, group life insurance, short and long-term disability coverages, the 2019 Study also reveals whether Iowa organizations offer a large number of work-life and convenience benefits in their workplace setting. The top five benefits offered by Iowa employers include:  Jury Duty Leave (89.2 percent), Bereavement/Funeral Leave (87.5 percent), Unpaid Leave (83.7 percent), Maternity Leave (72.6 percent), and Personal Days (63.6 percent).

The above information is just a small fraction of our survey results. The complete 2019 Iowa Employer Benefits Study© is available for purchase and download on this site.

To learn more, we invite you to subscribe to this blog.

 

2019 Iowa Employer Benefits Study© is Now Available!

2019 Iowa Employer Benefits Study©The 2019 Iowa Employer Benefits Study© overall summary is now available! As we have done with recent studies, we are providing this summary report through an electronic download only, rather than a printed hard copy.

The press release for this Study will be issued tomorrow, August 8.

As mentioned in a previous blog, we had 999 Iowa organizations participate in this year’s survey, reaching our goal of 1,000 respondents. In addition to the standard benefit questions presented each year, we asked organizations to share data on whether work-life and convenience benefits were offered by Iowa organizations, benefits that are highly-valued by employees.

If your organization participated in this year’s survey, we sincerely thank you for sharing your data with us and for your patience while the report was being published. We realize that many employers wish to use the results of this important Study during the fall enrollment process. On July 10th, participants in this Study were sent an email from us with a unique link to gain access to this report (at no cost).

If you have any questions, please don’t hesitate to contact us. Again, we greatly appreciate your interest in this 20th study!

To stay abreast of employee benefits, we invite you to subscribe to our blog.

Coming Soon! 20th Iowa Employer Benefits Study©

Coming Soon! 2019 Iowa Employer Benefits Study©We are very pleased that about 1,000 Iowa employers have responded to our 2019 Iowa Employer Benefits Study©! This number met our goal of having at least 1,000 organizations participate in our 20th survey. The results of this study will be available Wednesday, August 7th.

As we prepare to release our 20th Study, here are a few things to keep in mind:

  • The Overall Summary of the 2019 Iowa Employer Benefits Study© will be available for download from our website.
    • Employers who participated in the 2019 Survey were sent an email on July 10 to download this report using a specific pass code.
    • Employers who did not participate in the 2019 Survey will be able to download this Overall Summary for a small fee.

We have also updated our benchmarking program – Lindex®  allowing employers to compare their specific benefit offerings with other Iowa employers. Lindex® was developed with simplicity and intuitiveness in mind. In addition to learning how your benefits package compares with other Iowa organizations (using pertinent criteria such as employer size and industry), employers will be able to learn their individual Lindex® score and how their total benefits package compares to Iowa norms. There are some very sophisticated aspects about this benchmark program that will be extremely helpful to employers of all size and industry!

Our 2019 Iowa Employer Benefits Study© and/or Lindex® benchmarking program will be available for purchase beginning August 7. You will be able to purchase the Study on this website.

How can employers determine their Lindex® score?

You can either contact DPLB to learn more or visit with your authorized-benefits consultant to develop your Lindex® score. If your consultant does not currently participate in the Lindex® program, have them contact DPLB to learn how!

An easy way to stay informed is to subscribe to this blog.