Introduction to 2023 North Carolina Health Plan Trends
The “2023 North Carolina Size and Industry State Report,” created by United Benefit Advisors (UBA) in association with 1706 Advisors, provides a comprehensive analysis of health plan trends across different employer sizes and industries in North Carolina. This report is essential for employers seeking to benchmark their health plans against state and industry standards.
Health Plan Types by Group Size
Small vs. Large Employers
The report highlights significant differences in health plan preferences between small and large employers. Small businesses (1-100 employees) primarily choose Preferred Provider Organization (PPO) plans, with 72.5% opting for this type. High Deductible Health Plans (HDHPs) follow, making up 23.2% of plans. Large employers (101+ employees) also favor PPO plans (72.7%) but have a slightly higher inclination towards HDHPs (18.2%).
Cost Analysis of Health Plans
Employer Contributions
In North Carolina, large businesses pay a higher percentage of health plan premiums for both single and family coverage compared to smaller employers. For example, large employers contribute an average of 74% towards single coverage PPO premiums, while small employers contribute 72%. The report reveals that the average monthly premium for family coverage under PPO plans is $1,164 for large employers, significantly higher than the $722 for small employers.
Deductibles and Out-of-Pocket Costs
Comparing Plan Costs
The “2023 North Carolina Health Plan Trends” report also delves into deductibles and out-of-pocket maximums. Large groups have higher PPO plan deductibles ($2,750) compared to small groups ($2,500), but lower HDHP deductibles ($3,500 vs. $4,000). Out-of-pocket maximums are lower for larger employers, with a median of $5,750 for HDHPs compared to $6,400 for smaller employers.
Industry-Specific Health Plan Insights
Leading Industries in North Carolina
The report covers key industries such as Construction, Manufacturing, Professional/Scientific/Technology Services, and Health Care/Social Assistance. It highlights that while all industries predominantly choose PPO plans, the Construction sector has the highest prevalence. The Professional/Scientific/Technology Services industry shows a higher interest in HDHPs.
Conclusion: Strategic Insights for Employers
Employers in North Carolina can leverage the “2023 North Carolina Health Plan Trends” report to make informed decisions about their health benefit offerings. By understanding these detailed trends and benchmarks, businesses can better align their health plans with industry standards and improve their competitiveness in attracting and retaining top talent.