Articlr

HR consulting and investment firm Mercer, released a report that found the average deductible for an employer-sponsored PPO health insurance plan is $1,000 for 2008. Last year, the average PPO deductible was half that at $500. In fact, according to the Mercer report, the $500 average held from 2001 to 2007. In 2000, the average was $250.

There are a couple reasons why this is happening. One of them is because of health care costs increasing for employers. Becuase of this, they are relaying more of the costs to the employees with higher premiums and deductibles.

Another was the increasing popularity of high-deductible consumer-directed health plans and Health Savings Accounts (HSAs). Such plans are now offered by 20 percent of large businesses. Really, though, this is another way of cost shifting to employees. Higher deductibles and HSAs mean workers pay for more of their own health care costs out-of-pocket.

Of course, HSAs and similar plans have great advantages. You save money by them being tax free, as well as continuing to have major medical.

These sorts of plans are usually best for people who don’t need medical care too often. In the end, though, if deductibles go up, our purses get smaller.