Academic journal article Monthly Labor Review

Employer-Sponsored Health Insurance: What's Offered; What's Chosen?

Academic journal article Monthly Labor Review

Employer-Sponsored Health Insurance: What's Offered; What's Chosen?

Article excerpt

Newly available BLS data reveal that one-third of employees who were offered health care plans in 1992-93 had a variety of plan of types from which to choose

Increasingly more employees can choose from a variety of health care plans, thanks to the growing prevalence of preferred provider organizations (PPO's) and health maintenance organizations (HMO's) offered by employers during the past 15 years. New data from the Bureau of Labor Statistics show that two-fifths of full-time workers in private industry were offered a choice of health plans. More than one-half of full-time private establishment employees were offered a PPO or HMO plan, and nearly one-third of those who were offered health insurance could choose from more than one type of plan.

During 1992-93, 58 percent of private establishments offered their full-time employees at least one health plan. (See table 1.) Nearly 90 percent of those establishments offering a health plan offered only one plan, and less than 2 percent offered more than four plans. However, approximately one-third of private establishment employees that were offered health care could choose from more than one type of plan. These employees selected traditional fee-for-service plans more often than Ppo's and HMO's for nearly every combination of plan types offered.

Table 1. Number of health care plans offered to full-time
employees, private establishments,
1992-93
                                     Plans offered--
Number of health
   care plans             By establishment      To employee
                             (percent)           (percent)
All private establishments
  Total                        100                   100
0                               42                    12
1                               50                    47
2                                6                    18
3                                1                     8
4                                1                     6
5                               (1)                    3
6                               (1)                    3
More than 6                     (1)                    3
Medium and large private
establishments
Total                          100                   100
0                               20                     4
1                               38                    30
2                               23                    26
3                                9                    12
4                                6                     9
5                                2                     6
6                                1                     6
More than 6                      1                     6
Small private establishments
Total                          100                   100
0                               43                    20
1                               51                    62
2                                5                    12
3                                1                     3
4                               (1)                    3
5                               (1)                   (1)
6                               (1)                   (1)
More than 6                     (1)                   (1)
(1) Less than 0.5 percent.
NOTE: Because of rounding, sums of individual items may not
equal totals.

Since its inception in 1979, the Employee Benefits Survey' has provided data on the percentage of workers who receive employer-provided health insurance through different types of funding arrangements. During this period, the percentage of employees covered by alternative health care "delivery systems" such as HMO's and PPO's has grown significantly. (HMO's offer prepaid care from a select group of providers; PPO's allow employees to choose their provider, but offer financial incentives when designated doctors and hospitals are chosen.) As a result, the share of health care participants covered by fee-for-service plans has declined. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.