Workers in California firms are feeling the squeeze when it comes to their health benefits. The coverage landscape includes continued premium growth, more cost-sharing, and higher deductibles.

Employer-based coverage is the leading source of health insurance in California and nationally. Changes in coverage offerings, worker cost sharing, and benefits have major implications for millions of Californians. This report presents the highlights of the 2011 California Employer Health Benefits Survey, annual research that tracks changes in employer-based health benefits in the state over time.

This year workers at a quarter of California businesses saw their health benefits diminish while their copayments, deductibles, and premium shares increased. And more than a third of employers are considering shifting more premium costs to workers next year.

Key findings include:

• Since 2002, family premiums rose 153%, more than five times the 29% increase in California's inflation rate.
• The proportion of California employers offering coverage declined from 73% to 63% in the last two years.
• Annual premiums were higher in California than nationally for individual coverage ($5,970 versus $5,429) and family coverage ($15,724 versus $15,073).
• However, the employer contribution in California is significantly higher than the national average. Employers in California contributed $5,213 annually for single coverage and $11,921 for family coverage.
• Workers at small firms were much more likely to cover at least half of the premium for family coverage than workers at large firms.
• Workers at small firms with a deductible of $1,000 or more increased to 27% from just 7% in 2006.

The complete report is available, along with past editions, under Document Downloads.