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New 2017 MEPS-IC Data: ESI Offer Rate Held Steady, but Premiums Continued to Rise and More Employees Enrolled in High Deductible Plans
July 28, 2018:Though much attention has been paid to the individual health insurance market, a majority of Americans continue to get health insurance through an employer. Monitoring changes to employer-sponsored insurance (ESI) is critical to understanding Americans’ ability to access and afford health care.
The Agency for Healthcare Research and Quality (AHRQ) has released 2017 estimates from the Medical Expenditure Panel Survey – Insurance Component (MEPS-IC) on private sector employer-sponsored insurance (ESI) coverage, premiums, and deductibles. Highlights from the national tables are available in AHRQ Statistical Brief #513.
ESI offer rate remains stable
Nationally, the percent of employees working at establishments that offer coverage was statistically stable in 2017 at 84.5 percent (vs. 84.3 percent in 2016). Montana and Arizona were the only two states to experience statistically significant changes in the offer rate from 2016 to 2017: Montana’s offer rate increased from 66.2% to 73.2%, and Arizona’s increased from 83.5% to 87.4%. No state experienced a statistically significant decline in offer rates from 2016 to 2017.
ESI premiums continue to rise
At the national level, 2017 premiums for single-coverage ESI grew by 4.4 percent compared to 2016. This increase was larger than the 2.2 percent increase in premiums from 2015 to 2016. There was substantial state variation in the size of premium increases (Table 1). Fifteen states experienced statistically significant increases in premiums, 35 states (including D.C.) experienced no significant change in premiums, and Utah experienced a significant decrease.
| Table 1. States with Significant Changes in ESI Premiums, 2016-2016 (Single Coverage) | ||||
|---|---|---|---|---|
| State | 2016 ($) | 2017 ($) | Change ($) | Change (%) |
| Wyoming | 6,509 | 7,257 | 748 | 11.5% |
| New York | 6,614 | 7,309 | 695 | 10.5% |
| South Dakota | 5,881 | 6,533 | 652 | 11.1% |
| North Carolina | 5,717 | 6,348 | 631 | 11.0% |
| New Jersey | 6,492 | 7,074 | 582 | 9.0% |
| Alabama | 5,536 | 6,075 | 539 | 9.7% |
| Colorado | 5,972 | 6,456 | 484 | 8.1% |
| Michigan | 5,906 | 6,388 | 482 | 8.2% |
| Missouri | 5,881 | 6,354 | 473 | 8.0% |
| Connecticut | 6,545 | 7,012 | 467 | 7.1% |
| Tennessee | 5,543 | 6,006 | 463 | 8.4% |
| Oklahoma | 5,784 | 6,236 | 452 | 7.8% |
| Massachusetts | 6,621 | 7,031 | 410 | 6.2% |
| Rhode Island | 6,665 | 7,048 | 383 | 5.7% |
| Pennsylvania | 6,201 | 6,522 | 321 | 5.2% |
| Utah | 6,117 | 5,568 | -549 | -9.0% |
| United States | 6,101 | 6,368 | 267 | 4.4% |
| Source: Medical Expenditure Panel Survey - Insurance Component (MEPS-IC), Agency for Healthcare Research and Quality (AHRQ), Center for Financing, Access, and Cost Trends (CFACT). Notes: Estimates represent average annual premiums for single-coverage employer-sponsored insurance in nominal dollars. All changes are significant at the 95% confidence level. |
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More employees enrolled in high deductible plans
Nationally, the percent of employees enrolled in high deductible health plans (HDHP) increased to 48.7 percent in 2017 (from 42.6 percent in 2016). This increase in HDHP enrollment (6.1 percentage points) was larger than last-year’s change (3.2 percentage points). Six states and DC experienced significant increases in rates of HDHP enrollment (Table 2); no states experienced significant decreases in HDHP enrollment.
| Table 2. States with Significant Changes in Percent of Employees Enrolled in High Deductible Health Plans, 2016-2017 | |||
|---|---|---|---|
| State | 2016 (%) | 2017 (%) | Change (PP) |
| Florida | 39.9 | 61.9 | 22.0 |
| Utah | 43.7 | 62.8 | 19.1 |
| Vermont | 43.6 | 57.1 | 13.4 |
| Virginia | 36.5 | 46.7 | 10.2 |
| District of Columbia | 23.2 | 32.9 | 9.7 |
| California | 28.1 | 36.0 | 7.9 |
| Texas | 48.5 | 56.2 | 7.7 |
| United States | 42.6 | 48.7 | 6.1 |
| Source: Medical Expenditure Panel Survey - Insurance Component (MEPS-IC), Agency for Healthcare Research and Quality (AHRQ), Center for Financing, Access, and Cost Trends (CFACT). Notes: Estimates represent the percent of private-sector employees enrolled in high deductible health insurance plans. High-deductible health plans are defined as plans that meet the minimum deductible amount required for Health Savings Account (HSA) eligibility ($1,300 for an individual and $2,600 for a family in both periods). All changes are significant at the 95% confidence level. Changes are shown as percentage point changes. |
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Explore the Data: State Health Compare
SHADAC's State Health Compare has been updated to include 2017 MEPS-IC data. Visit State Health Compare to explore national and state-level MEPS-IC estimates for the years 2002 to 2017 for the following indicators:
- Workers in establishments that offer coverage
- Average annual ESI premium
- Employee contributions to premiums
- High deductible health plan enrollment (2012–2017)
Note: All changes described in this post are statistically significant at the 95 percent confidence level, unless otherwise noted.
