Medical Expenditure Panel Survey Agency for Healthcare 

Research and Quality

STATISTICAL BRIEF #190 

November 2007 

Deductibles for Employer-Sponsored 

Health Insurance in the Private Sector, 

by Firm Size Classification, 2002–2005 

Highlights 

 The percentage of 

employees enrolled in a 

health insurance plan that 

required a deductible was 

47.6 percent in 2002. This

figure jumped to 63.9 

percent in 2005. 

 By 2005, small firms’ 

employees were about as 

likely as large firms’ 

employees to have a 

deductible: 65.5 percent 

versus 63.6 percent. 

 For those enrollees with a 

single coverage plan 

requiring a deductible, the 

annual amount of the 

deductible was $446 in 

2002. By 2005, the 

average amount rose to 

$652, a 46.2 percent 

increase. In both years, 

enrollees at small firms 

had a much bigger single 

deductible than those of 

large firms. 

 For all firms, the average 

deductible for family 

coverage went up from 

$958 in 2002 to $1,232 in 

2005, or a 28.6 percent 

rise. As with single 

coverage deductibles, the 

amounts were higher in 

both years for employees 

of small firms compared to 

employees of large firms. 

Beth Levin Crimmel, MS 

Introduction 

Employer-sponsored health insurance for current workers is one of

the primary sources of health insurance coverage in the United

States. According to data from the 2005 Insurance Component of the 

Medical Expenditure Panel Survey (MEPS-IC), approximately 97.5 

million of the 112.2 million employees from the private sector worked 

in firms where the employer offered health insurance. Of those 

employees who worked where health insurance was offered, 

approximately 61.1 million were enrolled.

 

In recent years, premiums for employer-sponsored health insurance 

have risen dramatically. However, premium costs are only one of 

several factors that determine costs of health care for enrollees. 

Other factors, such as whether an enrollee has a deductible and its 

amount, also contribute to differences in cost of care.

 

This Statistical Brief examines what percentage of enrollees had a 

deductible and the amount of such deductibles. Data for 2002 are 

compared to those for 2005. Estimates for small firms (fewer than 50 

employees) and large firms (50 or more employees) are analyzed. 

Only those comparisons that had a statistically significant difference 

at the 0.05 percent significance level are noted in the text. 

Findings 

Overall, the percentage of employees enrolled in a health insurance 

plan that required a deductible was 47.6 percent in 2002 (figure 1). 

This figure jumped to 63.9 percent in 2005. In 2002, employees of 

small firms were more likely to be enrolled in a plan with a deductible 

(54.2 percent) than employees of large firms (46.0 percent). 

However, by 2005, small firms’ employees did not differ from large 

firms’ employees in their likelihood of having a deductible: 65.5 

percent versus 63.6 percent. The gap narrowed substantially 

between 2003 and 2004. 

For those enrollees with a single coverage plan requiring a deductible, the average annual amount of the 

deductible was $446 in 2002 (figure 2). By 2005, the amount rose to $652, or by 46.2 percent. In both 

years, enrollees at small firms had a much bigger single deductible than those of large firms. While the 

average deductible rose from 2002 to 2005 for both small and large firms’ enrollees, it increased at a 
greater rate for those in small firms. The small firm single deductible went from $602 in 2002 to $929 in 

2005, a 54.3 percent rise. For large firms, the comparable amounts were $391 in 2002 and $566 in 2005, 

or a 44.8 percent increase. 

For all firms, the average deductible for family coverage increased from $958 in 2002 to $1,232 in 2005, a 

28.6 percent rise (figure 3). As with single coverage deductibles, the amounts were higher in both years 

for employees of small firms compared to employees of large firms. And while small firm family 

deductibles rose more sharply than large firm family deductibles, both increases were smaller than those 

for single deductibles for the same firm size. Family deductibles in small firms increased from $1,371 in 

2002 to $1,899 in 2005, or 38.5 percent. Family deductibles in large firms rose from $865 (2002) to 

$1,111 (2005), or 28.4 percent. 

Data Source 

This Statistical Brief summarizes data from the 2002–2005 MEPS-IC. The data are available on the MEPS 

Web site at http://www.meps.ahrq.gov/mepsweb/survey_comp/Insurance.jsp or have been produced using 

special computation runs on the confidential MEPS-IC data available at the U.S. Census Bureau. 

Definitions 

Employer 

In this Statistical Brief, an employer is defined as a private sector firm. A firm is defined as a business 

entity that controls one or more business establishments or locations. Consequently, an employer can 

have multiple work locations. 

Firm size 

Firm size is the count of employees across all locations controlled by an individual firm. Small firms have 

fewer than 50 employees at all locations combined, while large firms have 50 or more employees at all 

locations combined. More than seven out of ten private sector employees (72.1 percent) work for large 

firms. 

Deductible 

A deductible is a fixed dollar amount during the benefit period (usually a year), that an insured person 

pays before the insurer starts to make payments for covered medical services. Plans may have both per 

individual and family deductibles. Some plans may have separate deductibles for specific services. For 

example, a plan may have a hospitalization deductible per admission. Deductibles may differ if services 

are received from an approved provider or if received from providers not on the approved list. 

About MEPS-IC 

MEPS-IC is a survey of business establishments and governments that collects information on employersponsored health insurance, such as whether insurance is offered, enrollments, types of plans, and 

premiums. The survey is conducted annually by the U.S. Bureau of the Census under the sponsorship of 

the Agency for Healthcare Research and Quality. The yearly response rate has averaged 78 percent for 

in-scope sample units. Approximately 4 percent of the original sample has been out-of-scope in a typical 

year. A total sample of 42,000 establishments was selected for the 2005 survey, prior to accounting for 

losses due to nonresponse and out-of-scope cases. 

 

For more information on this survey, see MEPS Methodology Reports 6, 8, 10, 14, 17, and 18 on the 

MEPS Web site at http://www.meps.ahrq.gov/mepsweb/data_stats/publications.jsp and Insurance 

Component Survey Basics at http://www.meps.ahrq.gov/mepsweb/survey_comp/ Insurance.jsp. 

Suggested Citation 

Crimmel, B.L. Deductibles for Employer-Sponsored Health Insurance in the Private Sector, by Firm Size 

Classification, 2002-2005. November 2007. Agency for Healthcare Research and Quality, Rockville, MD. 

http://www.meps.ahrq.gov/mepsweb/ data_files/publications/st190/stat190.pdf 

* * * 
AHRQ welcomes questions and comments from readers of this publication who are interested in 

obtaining more information about access, cost, use, financing, and quality of health care in the United 

States. We also invite you to tell us how you are using this Statistical Brief and other MEPS data and 

tools and to share suggestions on how MEPS products might be enhanced to further meet your needs. 

Please e-mail us at mepsprojectdirector@ahrq.hhs.gov or send a letter to the address below: 

Steven B. Cohen, PhD, Director 

Center for Financing, Access, and Cost Trends 

Agency for Healthcare Research and Quality 

540 Gaither Road 

Rockville, MD 20850 
Source: Center for Financing, Access, and Cost Trends, AHRQ, Insurance Component of the Medical Expenditure Panel Survey, 2005

Note: Small firms have fewer than 50 employees; large firms have 50 or more employees.

46.0

57.9

63.6

52.1

47.6

58.7

63.9

54.2

59.7

61.6

65.5

50.3

40

50

60

70

2002 2003 2004 2005

All firms Small firms Large firms

P

ercent

Figure 1. Percent of employees enrolled in a health 

insurance plan that had a deductible, by firm size, private

industry, 2002-2005 

 

Source: Center for Financing, Access, and Cost Trends, AHRQ, Insurance Component of the Medical Expenditure Panel Survey, 2005

Note: Small firms have fewer than 50 employees; large firms have 50 or more employees.

573

652 703

849

929

518

446

602

566

484

391

452

0

250

500

750

1,000

2002 2003 2004 2005

All firms Small firms Large firms

Figure 2. Average amount of deductible for employees 

enrolled in a health insurance plan that had a deductible, 

single coverage, by firm size, private industry, 2002-2005 

D

ollars

Statistical Brief #190: Deductibles for Employer-Sponsored Health Insurance in the Private Sector, by 

Firm Size Classification, 2002–2005 
Source: Center for Financing, Access, and Cost Trends, AHRQ, Insurance Component of the Medical Expenditure Panel Survey, 2005

Note: Small firms have fewer than 50 employees; large firms have 50 or more employees.

1,143 1,232

1,575

1,771 1,899

865

1,004 1,111

1,079

958

1,371

969

0

500

1,000

1,500

2,000

2002 2003 2004 2005

All firms Small firms Large firms

D

ollars

Figure 3. Average amount of deductible for employees 

enrolled in a health insurance plan that had a deductible, 

family coverage, by firm size, private industry, 2002-2005 

Statistical Brief #190: Deductibles for Employer-Sponsored Health Insurance in the Private Sector, by 

Firm Size Classification, 2002–2005