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In place since 2005 and unique in the nation, the Massachusetts healthcare model requires nearly every resident to buy health insurance. The plan iscertain to garner more attention this spring as penalties for companies andemployees who have not yet signed up go into effect in April.
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Massachusetts employers are continuing to spend more per year than otherstates for health insurance on a per employee basis. The plan is beingscrutinized as a potential model upon which to build a universal health caresolution in the U.S. It appeals to many residents because of itscomprehensiveness and relatively low cost, according to United BenefitAdvisors, one of the nation's leading independent employee benefits advisoryorganizations, employers are struggling to pay the high health care plancosts.
"The Massachusetts model is the closest concept to a national health careplan that we have today and some presidential candidates in various ways havehistorically touted that model as the foundation of their health caresolutions," said William Stafford, vice president of member services at UBA."Plans offered by employers in Massachusetts are in reality costing a fortune.During this time when presidential candidates are debating best practices tosolve the nation's health care crisis, Americans must carefully contemplatewhat is being proposed and weigh their decisions extremely carefully."
UBA has released results of its latest national benchmarking survey, the2007 UBA Health Plan Survey, a far-reaching industry analysis of employerhealth plan design and cost. UBA collected plan data from thousands of thenation's employers of all sizes with an emphasis on small- to mid-sizedemployers, who represent the majority of the nation's 3 million-plusemployers. The survey's primary purpose is to provide accurate, relevanthealth plan benchmarks that employers can use to make critical benefitsdecisions.
The 2007 UBA Health Plan Survey consists of 11,723 employers throughoutthe nation who combined extend health benefits to nearly 4.5 million employeesand family members.
"Our survey is the nation's largest comprehensive benchmark survey ofhealth plan design and costs," Stafford said. "The survey reveals criticalstatistics about hundreds of health plan factors, including enrollmentspecifics, plan design and cost and employee premium cost-sharing options,including consumer-driven health plans. Results also yield importantstatistics about prescription drug plans, retirement benefits and flexiblespending accounts."
Nationwide, based on 16,485 health plans included in the 2007 survey, theaverage annual total cost per employee, which includes both employer andemployee contributions, was $6,881.
According to the 2007 UBA Health Plan Survey, the five states that had thelowest average annual total cost per employee were (2006 survey results areincluded for comparison):
Copies of UBA's 2007 Health Plan Survey are available through local UBA-member firms. To find local UBA-member firms, visit www.benefits.com.
In the spring, UBA plans to release its 2008 Employer Opinion Survey, acompanion survey to the Health Plan survey which delineates employers'specific health care strategies, cost-containment efforts, opinions and futureexpectations regarding their health plans.
ABOUT UNITED BENEFIT ADVISORS
United Benefit Advisors, one of the nation's largest employee benefitadvisory organizations, has more than 1,900 experienced benefits professionalsin more than 165 offices throughout the U.S. and Canada. An alliance of thenation's premier independent ben