Survey: Massachusetts Employers, Employees Paying Most for Health Care Plans

INDIANAPOLIS, Jan. 31 /PRNewswire-USNewswire/ -- Presidential candidates,
federal and state politicians, the health care industry and voters will be
watching closely over the next year to gauge the success -- or failure -- of
major health care reform efforts, especially in states like Massachusetts.
In place since 2005 and unique in the nation, the Massachusetts health
care model requires nearly every resident to buy health insurance. The plan is
certain to garner more attention this spring as penalties for companies and
employees who have not yet signed up go into effect in April.
Massachusetts employers are continuing to spend more per year than other
states for health insurance on a per employee basis. The plan is being
scrutinized as a potential model upon which to build a universal health care
solution in the U.S. It appeals to many residents because of its
comprehensiveness and relatively low cost, according to United Benefit
Advisors, one of the nation's leading independent employee benefits advisory
organizations, employers are struggling to pay the high health care plan
costs.
"The Massachusetts model is the closest concept to a national health care
plan that we have today and some presidential candidates in various ways have
historically touted that model as the foundation of their health care
solutions," said William Stafford, vice president of member services at UBA.
"Plans offered by employers in Massachusetts are in reality costing a fortune.
During this time when presidential candidates are debating best practices to
solve the nation's health care crisis, Americans must carefully contemplate
what is being proposed and weigh their decisions extremely carefully."
UBA has released results of its latest national benchmarking survey, the
2007 UBA Health Plan Survey, a far-reaching industry analysis of employer
health plan design and cost. UBA collected plan data from thousands of the
nation's employers of all sizes with an emphasis on small- to mid-sized
employers, who represent the majority of the nation's 3 million-plus
employers. The survey's primary purpose is to provide accurate, relevant
health plan benchmarks that employers can use to make critical benefits
decisions.
The 2007 UBA Health Plan Survey consists of 11,723 employers throughout
the nation who combined extend health benefits to nearly 4.5 million employees
and family members.
"Our survey is the nation's largest comprehensive benchmark survey of
health plan design and costs," Stafford said. "The survey reveals critical
statistics about hundreds of health plan factors, including enrollment
specifics, plan design and cost and employee premium cost-sharing options,
including consumer-driven health plans. Results also yield important
statistics about prescription drug plans, retirement benefits and flexible
spending accounts."
Nationwide, based on 16,485 health plans included in the 2007 survey, the
average annual total cost per employee, which includes both employer and
employee contributions, was $6,881.
According to UBA's survey, the five states that had the highest average
total annual cost per employee in 2007 were (2006 survey results are included
for comparison):

2007 2006
Massachusetts $9,304 Massachusetts $8,631
Connecticut $8,865 Connecticut $8,457
New Jersey $8,758 New Jersey $8,437
New Hampshire $8,601 Michigan $7,916
Michigan $8,520 Rhode Island $7,725

According to the 2007 UBA Health Plan Survey, the five states that had the
lowest average annual total cost per employee were (2006 survey results are
included for comparison):
2007 2006
Arkansas $5,169 Mississippi $4,533
Idaho $5,564 Arkansas $4,835
Mississippi $5,624 Kentucky $5,405
Kentucky $5,640 Idaho $5,444
Arizona $5,813 Arizona $5,523

Copies of UBA's 2007 Health Plan Survey are available through local UBA-
member firms. To find local UBA-member firms, visit www.benefits.com.
In the spring, UBA plans to release its 2008 Employer Opinion Survey, a
companion survey to the Health Plan survey which delineates employers'
specific health care strategies, cost-containment efforts, opinions and future
expectations regarding their health plans.
ABOUT UNITED BENEFIT ADVISORS
United Benefit Advisors, one of the nation's largest employee benefit
advisory organizations, has more than 1,900 experienced benefits professionals
in more than 165 offices throughout the U.S. and Canada. An alliance of the
nation's premier independent benefit advisory firms, UBA members are better
positioned to help employers and their employees respond more efficiently and
effectively to the challenges of an ever-changing employee benefit
marketplace. Visit UBA online at www.benefits.com.
Contact: DUANE BRODT
317-571-0051

SOURCE United Benefit Advisors

Duane Brodt for United Benefit Advisors, +1-317-571-0051