Study Analyzes Reasons Public-Sector Health Premiums Are Higher Than Those in Private Sector

Health insurance premiums for state and local government employees were 14 to 19 percent higher than those for private-sector employees in 2014, a new AHRQ-coauthored study has found. The study, published in Monthly Labor Review, analyzed data from AHRQ’s Medical Expenditure Panel Survey Insurance Component and the U.S. Census Bureau to pinpoint the reason for the gap. While differences in health plan characteristics (such as benefit generosity) explained part of the difference, the authors found that other factors including differences in the age, gender and marital status of workers also played a role, sometimes a larger one than health plan characteristics. Access the abstract.