The Multiemployer Health Plan Landscape: A 15-Year Look (2006-2020)

Benefit costs over the past 15-year period have increased an average of 4.3% per year, according to the new report The Multiemployer Health Plan Landscape: A 15-Year Look (2006-2020). The average benefit costs for the plans increased about 5% from 2018 to 2020, reaching $12,298 per participant per year (PPPY).

For the plan year 2020, 79% of multiemployer health plans offered dental and vision benefits in addition to health benefits; 61% of plans also included life insurance benefits. Only 2% of plans offered only medical/prescription drug (only health) benefits. 

The percentage of plans covering retirees varies by industry and region. In general, the larger the number of active participants in a health plan, the more likely the plan is to also cover retirees. The percentage of multiemployer health plans covering retirees in the 2020 plan year was 73%. Most construction industry plans (80%) covered retirees while just over half of service industry plans (52%) covered retirees.

Despite shifting demographics and impacts due to the COVID-19 pandemic, which varied dramatically by industry, the total number of participants covered by multiemployer health plans remained relatively unchanged over the 15-year period, and the financial condition of many multiemployer health plans improved. 

This sixth multiemployer health plan benchmarking report was produced in partnership with Horizon Actuarial Services, LLC, and the International Foundation of Employee Benefit Plans. The comprehensive report covers the plan demographics, benefit costs, income and plan cash flows of 1,480 multiemployer health plans—providing coverage for more than five million participants.

View the Report

Members of the media can request a copy from [email protected].