2023 Indiana Employee Benefits Benchmark

BENEFIT ADVISORS 2023 INDIANA EMPLOYEE BENEFITS BENCHMARK Compare your plan designs, costs, and trends to other Indiana employers.

Table of Contents Explore 2023 benchmark data by preferred plan type, similar-sized groups, or by industry peers. 4 10 15 Plan Type Group Size Industry Choice Comparison Choice Comparison Choice Comparison Employer Costs Employer Costs Employer Costs Premiums Premiums Premiums Deductibles Deductibles Deductibles Out-of-Pocket Costs Out-of-Pocket Costs Out-of-Pocket Costs

About This Benchmark The UBA survey is the nation’s definitive employee benefits benchmarking survey. Since 2005, UBA Partner Firms have studied plan design and cost trends among employers on a state, regional, and national basis. 361 Hoosier Employers In Indiana, this survey includes employee benefits plans offered by 361 employers covering more than 74,000 employees. Employers interested in making the most informed health care plan decisions possible, it’s crucial to compare your plans and 74,000 costs not just to national benchmarks, but to peers in your state Hoosier Employees and region. This State Trends Report highlights key benchmarks to help you strategically manage plan renewal decisions.

2.7% 5.6% Indiana Average Which Health Plans Do Hoosiers Pick? 52.2% 39.5% Approximately 52% of plans in Indiana are High Deductible Health Plans (HDHPs), while about 40% of health plans in Indiana are Preferred Provider Organization (PPO) plans, ranking them second in prevalence. In Indiana, 78% of employees enroll in HDHPs and 20.7% of employees enroll in a PPO plan. PPO HDHP HMO/EPO POS 4 - LHD Benefit Advisors

HMO/EPO $13,358 Indiana Average Annual Plan Cost Per Employee PPO $13,354 In general, health plans in Indiana are more expensive than national and regional averages. HDHP $12,710 PPO plans cost $13,354 per employee annually, while HDHPs cost $12,710 per employee per year on average in Indiana. $10,166 POS 5 - LHD Benefit Advisors

Plan Type Single Family By Plan Type (75%) $504 (57%) $1,800 How Are Premium PPO (43%) $778 Contributions Split? (25%) $168 Indiana employers offering HDHPs in the state are covering 81% of single premiums and 68% of family premiums compared to the 80/58 (81%) $505 single/family employer contributions found nationally for these plans. (68%) $1,229 HDHP Employers in the state typically pick up 75% of (32%) PPO plan premiums for singles and 57% of family $599 premiums, compared the national 75/43 (19%) $117 single/family split for these plans. (70%) $408 Employer Avg Monthly Cost (55%) $985 Employee Avg Monthly Cost HMO/EPO (45%) $832 (30%) $180 6 - LHD Benefit Advisors

OOP Max Plan Type Deductible By Plan Type $5,000 Setting Deductibles, PPO $2,500 Out-of-Pocket Costs In Indiana, the median in-network deductible for singles on HDHPs is $3,000, which is the same nationally and in the north central U.S. for these plans. The median in-network PPO plan $5,000 deductible for singles is $2,500. HDHP $3,000 By comparison, national median PPO plan deductibles are $1,800 for singles; in the north central region, they are $1,750. $5,750 Median Deductible Cost Median OOP Maximum HMO/EPO $2,250 7 - LHD Benefit Advisors

Pharmacy (Rx) Copayments Indiana Average Generics Formulary Specialty Non-Formulary O P P PPO Plan Copays $10 $35 $75 $250 In Indiana, the median in-network deductible for singles on HDHPs is $3,000, which is the same nationally and in the north central U.S. for these plans. The median in-network PPO plan Physician Care Copayments deductible for singles is $2,500. By comparison, national median PPO plan Primary Care Specialty Care deductibles are $1,800 for singles; in the north $30 $50 central region, they are $1,750. 8 - LHD Benefit Advisors

PPO HDHP HMO/EPO Group Size 49.6% Group Size Small 36.8% 1-50 Employees Which Health Plans 9.9% Do Hoosiers Pick? While PPO plans are the most commonly offered plan nationally, employers in Indiana (particularly large employers) prefer high deductible health 49.0% 46.4% plans (HDHPs). Mid-Size 51-500 Employees Small groups have some limited interest in health maintenance organization (HMO)/ exclusive 2.3% provider organization (EPO) plans. Point of service (POS) plans are not common in the state. 77.3% Large 501+ Employees 22.7% 0% 9 - LHD Benefit Advisors

Group Size Single Family (73%) $436 By Group Size O P P Small (54%) How Are PPO $995 1-50 Employees (46%) $838 Premiums Split? (27%) $164 Large businesses in Indiana contribute the most toward single and family HDHP premiums compared to their smaller counterparts. (75%) $519 However, midsize groups are paying the largest Mid-Size (62%) $1,226 percentage of PPO plan premiums for singles, 51-500 Employees while large groups are paying the highest (38%) $738 percentage of family premiums for these plans. (25%) $169 Employer Avg Monthly Cost (71%) $484 Employee Avg Monthly Cost (66%) Large $1,349 501+ Employees (34%) (29%) $689 $196 10 - LHD Benefit Advisors

Group Size Single Family By Group Size (74%) $438 P H D H Small (51%) $931 How Are HDHP (49%) $897 1-50 Employees Premiums Split? (26%) $155 While PPO plans are the most commonly offered plan nationally, employers in Indiana (particularly large employers) prefer high deductible health (83%) $528 plans (HDHPs). (71%) $1,281 Mid-Size Small groups have some limited interest in health 51-500 Employees maintenance organization (HMO)/ exclusive (29%) $532 provider organization (EPO) plans. Point of (17%) $107 service (POS) plans are not common in the state. (84%) $533 Employer Avg Monthly Cost (78%) $1,446 Employee Avg Monthly Cost Large 501+ Employees (22%) $416 (16%) $99 11 - LHD Benefit Advisors

PPO HDHP Group Size By Group Size $6,000 Setting Deductibles, $5,000 Small $4,000 Out-of-Pocket Costs 1-50 Employees $2,850 Generally, the larger the group in Indiana, the lower the deductible and out-of-pocket costs. However small and large group deductibles in Indiana vary from national and regional medians. HDHP deductibles for singles are $3,000 both nationally and regionally. $5,000 Mid-Size $5,000 51-500 Employees Nationally, PPO plans have a median in-network $3,000 $2,000 deductible of $1,800 for singles, and $1,750 in the north central U.S. Median Deductible Cost Median OOP Max Cost $4,500 Large $3,550 501+ Employees $2,800 $1,000 12 - LHD Benefit Advisors

Surveyed Industries Construction / Mining / Professional / Scientific / Agriculture / Transportation Technology Services NAICS 562000 NAICS 53241 Administrative / Support Manufacturing Services NAICS 31-33 NAICS 541000

PPO HDHP HMO/EPO Industry 42.6% 41.7% Manufacturing NAICS 31-33 By Industry 6.1% Which Health Plans Do Hoosiers Pick? 62.3% Professional The top industries in Indiana prefer HDHPs, Services 31.2% particularly the Professional/Technology Services NAICS 541000 sector (NAICS 541000). 3.9% The Construction/Transportation sector (NAICS 53241) has surprising interest in HMO/EPO plans. 48.3% Construction/ 40.4% Transportation NAICS 53241 10.1% 56.2% Administration/ Support Services 37.0% NAICS 562000 6.8% 14 - LHD Benefit Advisors

Industry Single Family (73%) $475 By Industry (61%) $1,161 Manufacturing (39%) $738 O P NAICS 31-33 P How are PPO (27%) $179 Premiums Split? (76%) Employers in the state typically pick up 75% $499 Professional (55%) of PPO plan premiums for singles and 57% $1,073 (45%) $892 Services of family premiums, compared the national NAICS 541000 (24%) $160 75/43 single/family split for these plans. (74%) $501 Construction/ (51%) $958 (49%) $913 Employer Avg Monthly Cost Transportation Employee Avg Monthly Cost (26%) $180 NAICS 53241 (73%) $474 (64%) $1,206 Administration/ Support Services (36%) $675 (27%) NAICS 562000 $173 15 - LHD Benefit Advisors

Industry Single Family (81%) $503 (75%) $1,355 By Industry Manufacturing P H D NAICS 31-33 H How Are HDHP (25%) $453 (19%) $120 Premiums Split? (80%) $476 Indiana employers offering HDHPs in the state (56%) $1,010 Professional are covering 81% of single premiums and 68% of (44%) $809 Services family premiums compared to the 80/58 NAICS 541000 single/family employer contributions found (20%) $122 nationally for these plans. (83%) $500 Construction/ (58%) $1,040 Transportation (42%) $754 Employer Avg Monthly Cost NAICS 53241 Employee Avg Monthly Cost (17%) $101 (76%) $467 (53%) $984 Administration/ Support Services (47%) $856 NAICS 562000 (24%) $151 16 - LHD Benefit Advisors

PPO HDHP Industry $5,000 $5,000 Manufacturing $3,000 NAICS 31-33 $2,500 By Industry Setting Deductibles, Out-of-Pocket Costs $5,750 $5,725 Professional The Professional/Scientific/Technology $3,500 Services $2,825 Services sector in Indiana has among the NAICS 541000 highest deductibles and out-of-pocket maximums for singles, compared to other industries in the state. $6,000 $5,000 Construction/ $3,500 Transportation $2,500 NAICS 53241 Median Deductible Cost Median OOP Maximum $5,200 $5,000 Administration/ Support Services $3,000 NAICS 562000 $2,000 17 - LHD Benefit Advisors

Custom Benchmarking Your Data + Our Benchmark = A Leg Up On Competitors As a partner firm of the United Benefit Advisors® (UBA), LHD Benefit Advisors has access to the Milliman Benefits benchmarking database -- a tool used to provide organizations an even more customized benefits benchmark. Contact me to set up a meeting to create a custom benchmark report using your organization's plan data. MEET RYAN ABELL