ADP Research Institute®

2014 ADP Annual Health Benefits Report

In its second year, the 2014 ADP Annual Health Benefits Report highlights significant trends in employer-provided health benefits between 2010 and 2014, and creates a set of benchmarks that enable employers to better gauge the effectiveness of their current strategies.

The ADP Annual Health Benefits Report brings to light the relative impacts of health plan premium dynamics as well as changes in economic conditions, legislation and workforce demographics.

Key findings in this report include:

Premium increases leveling
In 2014, the average monthly health plan premium was $870, an increase of 15% since 2010. After a spike of 6.9% between 2010 and 2011, the rate of increase has moderated in subsequent years.

Costs vary by state
An analysis of 20 selected states showed the cost of health plan premiums — as well as premium increases — varied widely from state to state.

Regardless of salary, premium per covered life fairly constant
When premiums were adjusted for total covered lives — considering each insured person, rather than each employee — costs were fairly constant among income levels, averaging $411 per month in 2014.

Dependents on parent’s plan until age 26
Several trends identified may be linked to the ability of dependents up to age 26 to stay on a parent’s health policy, if the plan offers dependent coverage.

Employers contributing slightly less
Employer share of contributions to health premiums declined slightly from 2010 to 2014, within a tight range of -1.0% with no dependents to -1.5% with dependents.

Eligibility mostly flat or increasing
From 2010 to 2014, eligibility remained relatively flat or increased for all groups. The increase in eligibility was highest among those under 30, at 4.2%.

Keywords: Benefits Administration, Compliance

Business Types: Research for Large Organizations

Roles: Research for Human Resources Professionals

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