The Health-Care Homework Headache

By Michelle Singletary, Washington Post, October 5, 2006

When it comes to open enrollment, don't be like me.

Don't wait until the last day to figure out if you need to keep the benefit options you have or to change what you elected to get last year.

Open-enrollment season for benefits traditionally arrives in October and runs until November -- and in some cases lasts as late as December. It always comes the same time each year, and yet we put off opening those packets. That's what I typically do, and I definitely know better.

I know why I procrastinate. I know why others do. There's just so much to consider. Should I stick with my old insurance plan or switch to another? Or maybe I should sign up for the new health savings account. But is it right for my family?

Of course, whatever option you choose will probably cost more each year. Although the rate of increase in premiums for employer-sponsored health coverage has slowed, premiums nonetheless continue to rise, according to a report released last week by the Kaiser Family Foundation and the Health Research and Educational Trust (HRET).

Between spring 2005 and spring 2006, premiums for employer-sponsored health insurance rose by 7.7 percent, a slower rate than the 9.2 percent increase in 2005 and 11.2 percent increase in 2004, according to Kaiser and HRET.

Overall, premiums have increased 87 percent over the past six years. Family health coverage, including the employee and employer contributions at both large and small companies, now costs an average of $11,480 annually, while single coverage costs $4,242, the study found. If you work for a small company, you're likely to pay more. Workers at firms with three to 199 employees pay on average $3,550 for family coverage, compared with workers at larger companies, who pay $2,658. For single coverage, it's $689 at a smaller firm vs. $515 at a bigger one.

Three-quarters of single workers with coverage and more than 90 percent of those with family coverage pay at least a portion of their premiums. Single workers contribute, on average, $627 annually. That's $293 more than in 2000. Employees choosing family coverage are paying $2,973 annually, up $1,354.

The report also found that few employees are opting for high-deductible plans with a savings option, including those who qualify for health savings accounts. About 4 percent of covered workers are enrolled in such plans, a rate that's changed little from last year.

This Kaiser-HRET survey is a great window into what's happening with health coverage and its cost for the 155 million workers who rely on employer-sponsored health insurance. The random survey, conducted earlier this year, included 3,159 non-federal employers that had at least three workers. (More than 2,000 responded to the full survey, and an additional 1,000 replied to a question about offering coverage.)

The findings of the Kaiser-HRET survey essentially say we're still getting hit on the head, but not as hard as in the past.