$1,000 is Average Deductible For Group PPOs Health Insurance
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.
It is being said the reasons are due to a few key point. One was that health care costs for employers has increased by 6 percent within the past four years. This is resulting in the businesses across the country putting more of the cost of deductibles and premiums onto the workers.
Another was the increasing popularity of high-deductible consumer-directed health plans and Health Savings Accounts (HSAs). Such plans are now offered by 20 percent of large businesses. Really, though, this is another way of cost shifting to employees. Higher deductibles and HSAs mean workers pay for more of their own health care costs out-of-pocket.
Of course, HSAs and similar plans have great advantages. You save money by them being tax free, as well as continuing to have major medical.
But these plans are generally best for those who don’t often need care. The bottom line, though, is that as deductibles go up, wallets get thinner.
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