New Study Shows Health Benefit Trends for Large Organizations

Written by: PeopleKeep Team
Published on June 30, 2016.

Payroll giant ADP released their 2016 Annual Health Benefits Trends Report New Study Shows Health Benefit Trends for Large Organizationswhich discusses benchmarking and trends for large organizations. ADP anonymously sampled employees of 300 large organizations to identify key health benefit trends with the goal of determining the effects of “the economy, workforce demographics and the Affordable Care Act” on employer-sponsored insurance. Here are some of their findings.

Employee Eligibility On The Rise - Benefits Stable

Because the ACA defines a full-time worker as someone who works an average of 30 hours per week, early speculation prior to the launch left some employees nervous that their companies would choose to cut back hours rather than allow them to be eligible for health benefits. The ADP report shows that this was largely an unnecessary worry. The number of employees eligible for employer-sponsored health benefits has actually risen since 2014.

Participation Low Among 26 and Under Employees

It appears as though workers are taking full advantage of the extended dependent coverage outlined in the ACA, which allows them to keep children on their plan until the age of 26. Only 44 percent of eligible workers under the age of 26 enrolled in their employer-sponsored health benefits, which is a 1.7 percent decline over the two year study period.

Premium Increases Differ Across Industries

One of the more surprising pieces of information from ADP’s report is that the average increase in health benefit cost varies according to industry. ADP focused on five different industries for the purpose of this study: 1) Finance and Insurance; 2) Manufacturing; 3) Retail Trade; 4) Professional Services; and 5) Health Care and Social Assistance.

While each of the studied industries experienced health benefit cost increases, Health Care and Social Assistance incurred the largest increase at 10.2 percent. Coming in second was Finance and Insurance, then Retail Trade, Professional Services, and finally, Manufacturing with only a 2.1 percent increase.


Based upon ADP’s recent Annual Health Benefits Trends Report for Large Organizations, employer-sponsored insurance remains stable with employee eligibility on the rise. It also appears as though workers under the age of 26 are taking advantage of the extended dependent coverage clause by staying on their parents’ insurance plans.

Do ADP’s findings ring true in your organization? Let us know in the comments below!

Originally published on June 30, 2016. Last updated June 30, 2016.


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