Young and Low Wage Workers Health Plan Premiums and Participation

According to a new ADP Research Institute report, the average monthly health plan premium rose approximately 14% from 2010 to 2013. However, after a spike of nearly 8% between 2010 and 2011, the rate of increase moderated. Premiums rose approximately 3% in the last year. In 2013, the average monthly health plan premium was $832*. While health plan premiums rose for employees of all ages, the steepest increase was among those under 30.
Between 2010 and 2013, the percentage of full-time employees who were eligible** for employer-provided health benefits remained relatively steady at an average of 88%, and participation rates*** remained stable at an average of 65%. When employees under age 30 were offered benefits, however, only half participated in their employer's health benefits program in 2013. In 2013, health costs represented, on average, 8.4% of income for an employee earning between $15,000 and $20,000 versus 2.1% for an employee earning more than $120,000.
* The average monthly health plan premium includes both employer and employee contributions.
**Eligible Percentage refers to the segment of the employee population that is qualified to enroll in the health insurance offered by their employers.
***Participation Rate refers to the percentage of all employees (eligible and ineligible) who enroll in the health insurance offered by their employers.
Source: ADP Research Institute