Group Health Insurance Costs

Receiving health insurance through employers have become less and less popular with the rise of the Affordable Care Act (ACA), especially in the state of Florida. But a verge has settled in where Individual premium health care plans have steadily gone up over the years, causing them to be less and less affordable. This caused a few to take the risk of being uninsured for a few years of their life. Now with the big scare that approached in 2014, with the Tax Penalty, people are forced to be covered over the years as the Tax Penalty has become stronger and stronger (2016+ $695 per person [No More Than $2,500] or %2.5 of annual household income, whichever is greater). The Tax Penalty forces health insurance on some who cannot afford a plan, which is where group coverage can actually play a role, and has been over the past few years.


Group Health Insurance Rates Are Rising

Just like regular insurance, Group Insurance has steadily been increasing over the past few years as well. Since 2010, small business group costs have almost doubled in pricing, and has caused a toll on many businesses to reduce employee benefits which, in turn, decrease the benefits of working for the company.

Although ACA may be the pinpoint suspect in all the dramatic prices, the blame isn’t solely theirs to take. Statistics show that since the start of healthcare in the late 1990’s, all the way until 2013, that the costs for health insurance jumped x 1.5. The increase in price has been a thing of the past as well.


What Are The Costs of Group Health Insurance Policies Today?

The costs behind the scenes are a lot more pricey than most employees expect. Most employees only compare what they have to pay, they don’t see the huge cut most employers are giving them on the other end. With group health insurance, the risk is spread over the company. This means with a group health insurance plan, if more “life” happens among the employees (surgical needs, one going through pregnancy, chronic illness) the hit is taken as a team between the employer and the rest of the employees, and are more prone to seeing less coverage on their ends with a large premium rate increase.


Group Health Contributions

Below are averages from 2013 for employer Vs employee coverage for group health insurance policies.


Chart Pulled from Kaiser Family Foundation.