Introduction to Ohio Health Plan Cost Trends
The “2023 Ohio Design and Cost State Report,” prepared by United Benefit Advisors (UBA) in collaboration with 1706 Advisors, offers crucial insights into the costs and design trends of health plans among Ohio employers. This report serves as an essential resource for HR professionals and business leaders aiming to make informed health plan decisions.
Health Plan Types and Prevalence in Ohio
Dominance of HDHPs and PPOs
In Ohio, High Deductible Health Plans (HDHPs) lead the market, accounting for 50% of the health plans, followed closely by Preferred Provider Organization (PPO) plans at 47%. This preference diverges from the national trend where PPO plans are more dominant. Health Maintenance Organization (HMO) and Exclusive Provider Organization (EPO) plans, along with Point of Service (POS) plans, are much less common in Ohio.
Detailed Cost Analysis
Employer Contributions and Premium Costs
Ohio health plans are generally more expensive compared to national and regional averages. For instance, the average annual cost per employee for PPO plans is $13,688, while HDHPs cost $11,967. Ohio employers tend to cover a significant portion of these costs, with contributions for HDHPs reaching 81% for single premiums and 75% for family premiums. This is higher than the national average employer contributions of 80% for single and 58% for family HDHP premiums.
Deductibles and Out-of-Pocket Costs
Managing Costs Effectively
The report highlights that the median in-network deductible for singles on HDHPs in Ohio is $3,000, matching the national average. For PPO plans, the median single deductible in Ohio is $2,500, which is significantly higher than the national median of $1,800. Employers in Ohio typically include a $1,000 contribution to Health Savings Accounts (HSAs) or Health Reimbursement Arrangements (HRAs) for HDHPs to help offset out-of-pocket expenses.
Strategic Insights for Employers
Leveraging Benchmark Data
Ohio employers can leverage the detailed benchmarking data from the “2023 Ohio Health Plan Cost Trends” report to make strategic health plan decisions. By comparing their plans and costs to state and national benchmarks, employers can better manage plan renewals and ensure they offer competitive benefits that attract and retain top talent.
Conclusion: Data-Driven Health Plan Management
The “2023 Ohio Health Plan Cost Trends” report provides comprehensive data and insights that are invaluable for employers looking to optimize their health plans. By understanding these trends and adjusting strategies accordingly, Ohio businesses can effectively manage costs while providing valuable health benefits to their employees.