Issues

in Labor Statistics U.S. Department of Labor

Bureau of Labor Statistics

Employee Medical Care Contributions on the Rise

Summary 98-3

April 1998

Percent of medical care plan participants required to contribute

to plan costs, medium and large private establishments, selected

years, 1980-95

U.S. Department of Labor

Bureau of Labor Statistics

Percent

0

10

20

30

40

50

60

70

80

90

100

1980 1981 1982 1983 1984 1985 1986 1988 1989 1991 1993 1995

Family coverage

Single coverage

More employees are paying more

for their medical insurance

than ever before. In fact, the

proportion of those required to pay more

has been on the rise for the past decade

and a half, that is, over the 1980-95

period. Employees who obtain their

medical insurance through their

employer often contribute something to

the cost of that insurance. By 1995, with

the employer picking up the balance, two

in three full-time employees with

medical insurance contributed to the cost

of single coverage and four in five

contributed to the cost of family

coverage.1

In 1980, only a quarter of the

employees who purchased medical care

coverage through their employer were

required to contribute for single coverage

and just under half had to for family

coverage. By 1982, a majority contributed for family coverage, and by 1991 a

majority helped fund single coverage.

(See chart.)

Workers enrolled in health maintenance organizations (HMO’s) were more

likely to pay towards the cost of their

coverage than were those enrolled in

other types of plans (single coverage: 76

percent in HMO's and 64 percent in

others; family coverage: 86 percent in

HMO's and 75 percent in others). (See

table.)

Blue-collar and service workers were

less likely to contribute towards either

single or family coverage than their

white-collar counterparts. In 1995, 56

percent of blue-collar and service

workers helped pay for single coverage

and 67 percent did so for family

coverage. Among white-collar workers,

78 percent contributed towards single

coverage and 87 percent did so for

family coverage.

How much are they paying?

Average monthly employee contributions were almost $34 for single

coverage and over $118 for family

coverage in 1995. This was an 8-percent

increase over 1993 for single coverage

and a 10-percent increase for family

coverage. The Consumer Price Index

showed a similar increase for medical

care costs during the same period.

For most employees (about 80

percent) the cost for coverage (single and

family) was based on a flat dollar

amount. Fifty-six percent of workers

paid a flat monthly cost of between $20

and $49.99 for single coverage and 26

percent paid between $100 and $149.99

for family coverage.

Between 13 and 15 percent of the

participants required to contribute

toward single and family coverage did so

based on the options selected under a

"cafeteria plan" or employer-sponsored

reimbursement plan.

Workers enrolled in HMO’s paid

about 10 percent more for single

coverage and 20 percent more for family

coverage than did workers enrolled in

non-HMO’s.

Since 1991, average required

contributions for single and family

coverage for blue-collar workers has

been between 10 and 15 percent lower

than the average required contributions

of white-collar workers.

In 1983, the average employee

contribution was about $10 a month for

single coverage and $33 a month for

family coverage. By 1995, employee

contributions were three to four times as

high. During this same time period, the

Consumer Price Index medical care costs

component doubled.

For additional information see Allan

P. Blostin and Jordan N. Pfuntner, “Employee Medical Care Contributions on

the Rise,” Compensation and Working

Conditions, Spring 1998, pp. 45-51.

For more information on the Office of

Compensation and Working Conditions’

programs, access the BLS Internet site at

http://stats.bls.gov/proghome.htm#ocwc

or e-mail ocwcstaff@bls.gov with your

request.

1

 Data in this report are from the Bureau of Labor

Statistics 1995 Employee Benefits Survey of medium

and large private establishments.
Table 1. Medical care benefits: Percent distribution of requirements for employee contributions by type of fee arrangement and

occupational category of full-time employees, medium and large private establishments, 1995

Contributory status

All employees Professional, technical,

and related employees

Clerical and sales

employees

Blue-collar and service

employees

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

All

plans

NonHMO

plans

HMO

plans

Number with medical care

coverage (in thousands) ......... 25,546 18,501 7,045 7,467 4,941 2,525 6,158 4,145 2,013 11,921 9,415 2,507

 Single coverage

Total with single coverage for

 medical care ........................... 100 100 100 100 100 100 100 100 100 100 100 100

Employee contributions not

required .............................. 33 36 24 21 22 18 24 26 21 44 47 32

Employee contributions

required .............................. 67 64 76 79 78 82 76 74 79 56 53 68

 Family coverage

Total with family coverage for

 medical care ........................... 100 100 100 100 100 100 100 100 100 100 100 100

Employee contributions not

required .............................. 22 25 14 11 12 8 15 16 12 33 36 22

Employee contributions

required .............................. 78 75 86 89 88 92 85 84 88 67 64 78

NOTE: Because of rounding, sums of individual items may not equal totals.

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Medical care benefits: Percent distribution of requirements for employee contributions by type of fee arrangement and

occupational category of full-time employees, medium and large private establishments, 1995