Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Average cost of health insurance plan. Reference point for your next analytical review of health insurance costs.

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Image courtesy of Adobe Stock.

Here are some tidbits for your next analytical review of health insurance costs during an audit or review.

From annual survey by Kaiser Family Foundation of employer provided health insurance:

  • $20,576 – average annual cost of family plan in 2019
  • $19,616 – average annual cost of family plan in 2018
  • 71% – average portion of costs paid by employer

  • $7,188 – average annual cost of individual plan in 2019
  • $6,911 – average annual cost of individual plan in 2018 (calculated based on 4% increase 2019)

Information is from Wall Street Journal on 9/25/19:  Cost of Employer-Provided Health Coverage Passes $20,000 a Year  (https://www.wsj.com/articles/cost-of-employer-provided-health-coverage-passes-20-000-a-year-11569429000) .

Table in the article provides info for amount paid by employer and employee if you hover over the components of the graph. I calculated total and change in each component by year:

employee % chg employer % chg total % chg
2019       6,015 8.4%        14,561 3.5%     20,576 4.9%
2018       5,547 -2.9%        14,069 7.8%     19,616 4.5%
2017       5,714 8.3%        13,049 1.4%     18,763 3.4%
2016       5,277 6.5%        12,865 2.2%     18,142 3.4%
2015       4,955        12,591     17,546

 

(Pro tip: Print this post then add it to your workpapers to document an expectation for cost and rate of change for health insurance, citing survey by Kaiser as source.)

 

Written by Jim Ulvog

September 25, 2019, 10:50 am at 10:50 am

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