Sep 17, 2018
Health care costs continue to rise in California with the average health plan now topping $19,200 a year for a family. But employers and workers seem to be reaching their limit when it comes to increasing out-of-pocket costs, according to a report by the California Health Care Foundation (CHFC). PPO deductibles in California are nearly 20% below the national average despite the state’s relatively high cost of care. The number of workers with a PPO deductible over $500 is climbing in California, but it’s still only about half the national rate. In 2017, only 13% of workers with job-based coverage had high-deductible health plans (HDHPs) in California. While that number has more than doubled in four years, it still lags far behind the national rate. Californians with job-based coverage are much more likely to have HMOs (50%) or PPOs (28%) despite higher premiums. This is not to say that California employers have abandoned consumer-focused strategies, according to the CHFC. Walmart, Lowes, and McKesson waive copays and deductibles for employees who get services from pre-screened providers delivering low-cost, high-quality care. Your LISI Regional Sales Manager can help you create cost-saving strategies for your clients.
