Midstate benefits trends: More employers cut spousal coverage, survey finds

Employers in the midstate are tightening the reins when it comes to employee benefits, according to a new survey.

The survey found that due to rising health-plan costs, employers are offering more high-deductible health plans, and they are restricting coverage for spouses.

The Medical and Prescription Drug Survey, which measures how Central Pennsylvania businesses manage health benefits for employees, was conducted by Conrad Siegel Actuaries, an employee benefits and consulting company in Susquehanna Township, Dauphin County.

In December , Conrad Siegel surveyed more than 110 employers, both nonprofit and for-profit, from a range of industries, including education, health care, manufacturing and finance.

Of the surveyed companies, 65 percent had more than 100 employees.

Here are three things to know about employer health benefit trends in the midstate.

1. Spousal coverage is being cut

The amount of companies limiting spousal coverage in the midstate is going up.

The survey found that 33 percent of employers had some form of provision that limits spousal coverage for medical and prescription drug insurance, up from 31 percent in 2014 and 25 percent in 2013.

Of that 33 percent of employers limiting coverage, 52 percent didn't allow spousal coverage at all if the spouse can get insurance elsewhere.

“As employers’ health insurance costs rise, they are continuing to drop or put restrictions around spousal coverage,” Rob Glus, a partner at Conrad Siegel said. “Limiting working spousal coverage is an attempt to shift a portion of these increasing costs back to the spouse’s employer, as opposed to making even more drastic cuts to benefit levels for all of their own employees.”

As for employers that did offer spousal coverage, 27 percent required a surcharge.

The average surcharge in 2015 was $2,288, up from $1,730 in 2014.

2. More high-deductible health plans are being offered

There’s also a shift to more consumer-directed health care plans, which are typically high-deductible health plans paired with some form of a health savings account.

Health savings accounts allow employees to put money into an account and then use it for out-of-pocket medical expenses.

Similar options include health reimbursement accounts, medical expense reimbursement plans and flexible spending accounts, which all work slightly differently.

When it comes to health savings accounts or health reimbursement accounts, 50 percent of employers offered them.

3. Premium sharing continues

In addition to limiting spousal coverage and offering high-deductible health plans, employers remained committed to charging employees a portion of their premiums.

The average percentage of the medical premium that employees paid in 2015 was 15 percent for single coverage, and 20 percent for family coverage.

In 2015, only 11 percent of the surveyed companies did not make employees pay any premiums.

Source: Central Penn Business Journal