Employment-Based Health Insurance

Chartbook Section 3

Section 3: Employment-Based Health Insurance

Background on the labor market Firm sizes Industry sector distributions Part-time employment

Availability of coverage Employer offer rates Eligibility Access, take-up, and coverage

Cost of coverage & cost sharing Total premium Employer/employee shares of premium Enrollees in plans with deductibles

A summary of the charts and graphs contained within is provided at Chartbook Summaries - Section 3. Direct links are listed on each page. Please contact the Health Economics Program at 651-201-3550 or health.hep@state.mn.us if additional assistance is needed for accessing this information.

BACKGROUND ON THE LABOR MARKET (SELECT YEARS)

4

Distribution of Minnesota Establishments and Employees by Firm

Size, 2014/2015

Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

Firms Employees0%

20%

40%

60%

80%

100%

60.4%

11.0%

10.5%

7.8%

5.8%

7.4%

6.5%

14.9%

16.9%

58.8%

Less than 10 10-24 25-50 51-200 201+

5

Percent of Minnesota Employees in each Industry Sector

*Indicates a statistically significant difference (95% level) from previous time period shown.Professional Services 2002/2003 figure does not meet MEPS survey standard of reliability or precision.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

2002/2003 2006/2008 2010/2011 2014/20150%

20%

40%

60%

80%

100%

5.0% 5.7% 4.7% 4.6%

14.4% 12.2% 15.1% 12.3%

40.3%32.9% 30.7% 32.3%

22.3%

24.7% 30.1% 27.7%

18.1%24.5%* 19.4% 23.0%

Agriculture/Fishing/Forestry Mining/Manufacturing Retail/Other Services Professional Services All Others

6

Percent of Minnesota Employees Working Part-Time

Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Part-time is defined by survey respondent as not being full-time. Full-time definition is determined by respondent and no minimum number of hours is specified in the survey. Data presented are weighted averages of two years of data.Summary of Graph

2002/2003 2006/2008 2010/2011 2014/20150%

5%

10%

15%

20%

25%

30%

35%

40%

26.2% 25.8% 26.6% 27.9%

AVAILABILITY OF COVERAGE(SELECT YEARS)

8

Percent of Minnesota Establishments Offering Health Insurance Coverage

*Indicates a statistically significant difference (95% level) from previous time period shown.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

2002/2003 2006/2008 2010/2011 2014/20150%

20%

40%

60%

80%

100%

56.2%52.7%

47.3%*43.3%

9

Percent of Minnesota Employees Working for an Establishment That

Offers Health Insurance

Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

2002/2003 2006/2008 2010/2011 2014/20150%

20%

40%

60%

80%

100%

88.6% 87.4%83.9% 82.6%

10

Percent of Minnesota Employers Offering Health Insurance, by Firm Size

*Indicates a statistically significant difference (95% level) from previous time period estimate.^Indicates a statistically significant difference (95% level) from average of all firms within time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

Fewer th

an 10 Emplo...

10 to 24 Employee

s

25 to 50 Employe

es

51 to 200 Employee

s

201+ Employe

es

All Firm

s0%

20%

40%

60%

80%

100%

^ ^ ^ ^ ^^ ^ ^ ^ ^^ ^ ^* ^ *^ ^ ^ ^

^^

^

^

^

^ ^

^

^

^

^ ^

^ ^^*

^

*

^

^

11

Percent of Minnesota Employers that Offer Family Coverage by Firm Size

*Indicates a statistically significant difference (95% level) from previous time period estimate.^Indicates a statistically significant difference (95% level) from average of all firms within a time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

Fewer

than 25 Employees

25-50 Employees

51-200 Employees

201+ Employee

s

All Firm

s0%

20%

40%

60%

80%

100%

^ ^ ^^ ^^ ^ ^^ ^ ^

Among Firms that Offer Coverage

*

^

^

^

^

^

^

^

^

^

^

^

12

Percent of Minnesota Employees in Establishments That Offer Health

Insurance, by Firm Size

*Indicates a statistically significant difference (95% level) from previous time period estimate.^Indicates a statistically significant difference (95% level) from average of all firms within time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

Fewer t

han 10 Employee

s

10 to 24 Employee

s

25 to 50 Employe

es

51 to 200 Employee

s

201+ Employe

es

All Firm

s0%

20%

40%

60%

80%

100%

^ ^ ^ ^^ ^ ^ ^^ ^ ^^ ^ ^ ^

^

^

^^ ^

^

^

^

^

^

^

^^

^

^

13

Percent of Minnesota Employees Eligible for Health Insurance, by Firm

Size

*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.^Indicates a statistically significant difference (95% level) from average of all firms within time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

Fewer t

han 10 Em

ployees

10 to 24 Em

ployees

25 to 50 Em

ployees

51 to 200 Em

ployees

201+ Employee

s

All Firm

s0%

20%

40%

60%

80%

100%

^ *

Among Firms that Offer Health Insurance

^

*

14

Percent of Eligible Minnesota Employees Who Enroll in Coverage

(Take-up Rate), by Firm Size

Among those eligible for coverage from their employer.*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.^Indicates a statistically significant difference (95% level) from average of all firms within time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

Fewer

than 10 Em

ployees

10 to 24 Em

ployees

25 to 50 Em

ployees

51 to 200 Em

ployees

201+ Employee

s

All Firm

s0%

20%

40%

60%

80%

100%

^ ^ *

Among Employees Eligible for Health Insurance Coverage

^ ^

*

15

Trends in Eligibility, Take-up and Coverage in Firms That Offer Health

Insurance

“Take-up” is the percent of eligible employees who enroll in health insurance. “Coverage” is the percent of all employees with an offer who enroll in health insurance.*Indicates a significant difference (95% level) from estimate of previous time period shown.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data presented are weighted averages of two years of data.Summary of Graph

Eligibility Take-up Coverage0%

20%

40%

60%

80%

100% Among Minnesota Employees in Establishments that Offer Coverage

* *

* *

16

Percent of Minnesota Employees Enrolled in Coverage by Industry

Sector

“Coverage” is the percentage of all employees with an offer who enroll in health insurance.*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.^Indicates a statistically significant difference (95% level) from average of all firms within time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. “Not reported“ indicates not enough data to provide results. Data presented are weighted averages of two years of data.Summary of Graph

Ag. / Fis

hing /

Forestr

y

Mining / Manufactu

ring

Retail / O

ther Servi

ces

Professional S

ervice

s

All Others

Total0%

20%

40%

60%

80%

100%

^ ^ ^ ^*Not

repo

rted

^ ^ ^^ ^ ^^ ^ ^

Not Reported

^^^

^

^ ^^

^^

^*^^

^

17

Percent of Minnesota Employees Enrolled in Coverage by Full-Time/Part-

Time Status

*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.^Indicates a statistically significant difference (95% level) from average of all firms within time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Part-time is defined by survey respondent as not being full-time. Full-time definition is determined by respondent and no minimum number of hours is specified in the survey. Data presented are weighted averages of two years of data.Summary of Graph

Full-Time Part-Time All workers0%

20%

40%

60%

80%

100%

^ ^^ ^^ ^^ ^ *^

^^

^

^

^

^

^

*

COST OF COVERAGE & COST SHARING(SELECT YEARS)

19

Average Annual Health Insurance Premiums in Minnesota

*Indicates a significant difference (95% level) from estimates of previous time period shown.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Family coverage excludes employee-plus-one coverage. Data presented are weighted averages of two years of data.Summary of Graph

Series1 $-

$4,000

$8,000

$12,000

$16,000

$20,000

* ** ** *

Single Coverage Family Coverage

*

*

*

*

*

*

20

Average Annual Health Insurance Premiums in Minnesota for Single

Coverage, by Firm Size

*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.^Indicates a statistically significant difference (95% level) from average of all firms within a time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Family coverage excludes employee-plus-one coverage. Data presented are weighted averages of two years of data.Summary of Graph

Fewer than 10 Employees

10-24 Employees 25-50 Employees 51-200 Employees 201+ Employees All Firms $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

* * * ** * *^ * *

^ *

^

**

^* *

*

**

**

*

21

Average Annual Health Insurance Premiums in Minnesota for Family

Coverage, by Firm Size

*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.^Indicates a statistically significant difference (95% level) from average of all firms within a time period.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Family coverage excludes employee-plus-one coverage. “Not reported“ indicates not enough data to provide results. Data presented are weighted averages of two years of data.Summary of Graph

Fewer than 10 Employees

10-24 Employees 25-50 Employees 51-200 Employees 201+ Employees All Firms $0

$4,000

$8,000

$12,000

$16,000

$20,000

* ^ * * ** * ** *

Not Reported

Not

repo

rted

Not

repo

rted

^**

* *** *

**

Not

repo

rted

Not Reported Not Reported

22

Average Employer and Employee Shares of Premiums in Minnesota

Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Family coverage excludes employee-plus-one coverage. Results are not statistically significant at the 95% level from previous time period shown. Data presented are weighted averages of two years of data.Summary of Graph

2002/2003 2006/2008 2010/2011 2014/2015 2002/2003 2006/2008 2010/2011 2014/20150%

20%

40%

60%

80%

100%

18.3

%

20.2

%

20.3

%

22.2

%

23.8

%

25.6

%

24.8

%

27.8

%

81.7

%

79.8

%

79.7

%

77.8

%

76.2

%

74.4

%

75.2

%

72.2

%

Employee Share Employer Share

Single Coverage Family Coverage

23

Average Annual Employee and Employer Contribution to Premiums in

Minnesota

*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Family coverage excludes employee-plus-one. Data presented are weighted averages of two years of data.Summary of Graph

2002/2003 2006/2008 2010/2011 2014/2015 2002/2003 2006/2008 2010/2011 2014/2015 $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$635 $851 * $1,054 * $1,276 * $2,268

$3,190 * $3,679 *

$4,627 *

$2,858 $3,360 *

$4,131 * $4,464 *

$7,234

$9,335 *

$11,089 * $12,016

Employee Share Employer Share

Single Coverage Family Coverage

24

Percent of Enrollees Whose Employer Pays 100 Percent of Premium Coverage

in Minnesota

Family figures for 2002/2003, 2006/2008, and 2010/2011 do not meet standard of reliability or precision.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Family coverage excludes employee-plus-one coverage. Data presented are weighted averages of two years of data.Summary of Graph

Single Coverage Family Coverage0%

5%

10%

15%

20%

25% 23.1%

10.3%

20.0%

9.6%

12.4%*

6.3%

13.8%

6.1%

2002/2003 2006/2008 2010/2011 2014/2015

25

Distribution of Minnesotans with Employer Coverage by Level of

Employer Contribution, 2014/2015

Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Family coverage excludes employee-plus-one coverage. Data presented are weighted averages of two years of data.Summary of Graph

Less than 50% 50% to 69% 70% to 79% 80% to 89% 90% to 99% 100%0%

10%

20%

30%

40%

4.9%

20.9%

28.8%25.0%

6.6%

13.8%10.2%

26.7%

34.8%

16.7%

5.5% 6.1%

Single Family

Percent Contributed By Employer

26

Percent of Employees Enrolled in a Health Plan with a Deductible

*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data not available for prior to 2003. Data presented are weighted averages of two years of data.Summary of Graph

Single Coverage Family Coverage0%

20%

40%

60%

80%

100%

75.6%69.3%

84.2%* 82.1%*

94.9%* 96.1%*

2006/2008 2010/2011 2014/2015

27

*Indicates a statistically significant difference (95% level) from estimate of previous time period shown.Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Data not reported prior to 2002. Data presented are weighted averages of two years of data.Summary of Graph

Average Deductible for Individuals with Employer Coverage

Single Coverage Family Coverage$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$777

$1,484$1,222 *

$2,316 *

$1,625 *

$3,218 *

2006/2008 2010/2011 2014/2015

28Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Deductible data not reported prior to 2002. Data presented are weighted averages of two years of data.Summary of Graph

Cumulative Growth Rates of Premiums and Deductibles for Individual

Coverage

2002/2003 2004/2005 2006/2008 2010/2011 2012/2013 2014/20150%

50%

100%

150%

200%

250%

300%

Employee Premium Growth Employer Premium Growth Deductible Growth

29Source: MDH analysis of data for private employers from the Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey-Insurance Component. Deductible data not reported prior to 2002. Data presented are weighted averages of two years of data.Summary of Graph

Cumulative Growth Rates of Premiums and Deductibles for Family Coverage

2002/2003 2004/2005 2006/2008 2010/2011 2012/2013 2014/20150%

50%

100%

150%

200%

250%

Employee Premium Growth Employer Premium Growth Deductible Growth

Additional Information from the Health Economics Program Available Online

Health Economics Program Home Page www.health.state.mn.us/healtheconomics

Publicationshttps://apps.health.state.mn.us/hep-publications/home.xhtml

Health Care Market Statistics (Chartbook Updates) www.health.state.mn.us/divs/hpsc/hep/chartbook/index.html

Agency for Healthcare Research and Quality-Medical Expenditure Panel Survey Methodology http://meps.ahrq.gov/mepsweb/survey_comp/ic_technical_notes.shtml#estimation

A summary of the charts and graphs contained within is provided at Chartbook Summaries - Section 3. Direct links are listed on each page. Please contact the Health Economics Program at 651-201-3550 or health.hep@state.mn.us if additional assistance is needed for accessing this information. 30