Nation’s Largest Health Plan Survey Cites Cost Disparity Impact for Multi-State Employers

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Key findings from the UBA 2011 Health Plan Survey listing the most expensive and most affordable states for employer-sponsored health plan coverage, based upon the average annual cost (AAC) per employee. The ACC for all plans nationally from the 2011 UBA Health Plan Survey was $8,688.

The survey reveals that while Alaska has the highest AAC per employee at $11,926, the only other states with an AAC per employee in excess of $10,500 are all located in the Northeast:

State                Average Annual Cost per Employee

Alaska                    $11,926
New York                    $11,308
Massachusetts                $11,004
Connecticut                $11,000
New Jersey                $10,642

Mississippi has the lowest ACC out of the five least expensive states, replacing Kentucky as the lowest reported in the 2010 survey results.

State                Average Annual Cost per Employee

Mississippi                    $ 6,282
Arkansas                    $ 6,741
Kentucky                    $ 6,801
Idaho                    $ 7,029    
Arizona                    $ 7,119

“These are important benchmarks for employers looking to expand into various states and the potential impact on overall human resource costs. This may also have a bearing on the various future policies states adopt in responding to health care reform in their local market,” said Bill Stafford, UBA Vice President, Member Services.

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