Friday, 13 October 2006
Workers and Employers Paying More For Health Insurance
Even people with employer-sponsored health coverage are feeling the healthcare pinch. A new cost estimate projects that the average cost in premium contributions and out-of-pocket medical expenses will increase by almost 8%. In 2007, the average yearly cost will be $3,305 a year. The rise in premiums alone is expected to take $140 a month out of workers’ paychecks.
The employers who provide these plans are going to see their costs go up, too. The increase in employer contributions is being estimated at 7.7% — putting the average contribution at $8,340 for each employee.
“The true dollar cost is still a significant amount,” said David Stacey of Hewitt Associates, a Human Resources firm that conducted the study. “The true dollar cost is driving employers to make changes. The easiest thing for them to do is to shift costs.”
One reason for the increase in the average worker’s contributions is that more employers are promoting high deductible health plans and health savings accounts .
The study looked at data from 400 employers offering health insurance benefits. The 400 employers provide benefits to over 18 million workers.
Technorati Tags: Group Health Insurance
