According to a recent report by Benefitfocus—a benefits administration and technology firm—of 500 plus U.S. employers, Southern workers carry higher-than-average financial responsibility for their health plans.
The report examines healthcare offerings and adoptions across the country and finds that southern workers are paying 6% to 17% higher high deductible health plans (HDHP) deductibles and 22% to 37% higher preferred provider organizations (PPO) deductibles than other regions. These results come despite the rise of employers in this region offering at least three voluntary benefits allowing for more choices.
Carrie Bartlett, a senior benefits consultant from OneDigital Mid-Atlantic, notes that the lack of health maintenance organizations (HMOs) options could be impacting the higher costs in the region in the article “As High Deductible Plan Popularity Rise so Do Premiums” by Employee Benefit Adviser.
HMOs typically have lower reimbursements than PPOs which drive the cost down quite a bit. It naturally impacts the cost of PPO reimbursement because the health insurance carriers have to price competitively to get doctors to participate in their network
To download The State of Employee Benefits report by Benefitfocus, click here.