GPAHU Pulse – January 2021

Here’s something to talk about when discussing plan design options and employer contribution strategy with group clients in the New Year. Premium contributions and deductibles in employer plans took up a growing share of workers’ incomes over the past decade. Those costs together accounted for 11.5 percent of median household income in 2019, up from 9.1 percent a decade earlier. On average, the employee share of premium amounted to 6.8 percent of the median income in 2019. The number is up from 5.8 percent in 2010 but has remained relatively constant since 2015. The average deductible for a middle-income household amounted to 4.7 percent of income in 2019, up from 3.3 percent in 2010. If premiums and deductibles do not fall this year, household income lost during the current economic crisis will increase middle-income families’ cost burdens. Source: State Trends in Employer Premiums and Deductibles, 2010–2019 The Commonwealth Fund, November 20, 2020 The Big Three Each month GPAHU identifies three top public policy or legal developments that could impact our members and clients. Here are this month’s big three! Consolidated Appropriations Act of 2021 Includes Broker-Specific Reporting Requirements On December 27, 2020, President Trump signed the Consolidated Appropriations Act of … Read More