Healthcare expenses for U.S. employers are expected to rise at the lowest rate since 1997, while the cost of workers' benefits will outpace the increase in earnings, according to a survey of nearly 1,600 employers by benefits consulting firm Mercer.
According to an LA Times report, companies expect health benefit costs to rise an average of 5.4 percent next year, the smallest increases in over a decade. The smaller increase can be traced to cost-cutting efforts by employers, many of whom are pushing lower-cost health plans or raising insurance deductibles for workers.
Employers said they expect average health benefit costs to rise 7.1 percent in the absence of cost-cutting. That's about 9 percent lower than the increases from each of the last five years.
The lower increase may also be related to patients delaying or foregoing care because of the recession. Employees may also be participating in programs to improve their health at the workplace, according to the report. Employers still expect to pass on significant costs to workers by raising deductibles, co-payments or contributions to insurance premiums, according to the survey.
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According to an LA Times report, companies expect health benefit costs to rise an average of 5.4 percent next year, the smallest increases in over a decade. The smaller increase can be traced to cost-cutting efforts by employers, many of whom are pushing lower-cost health plans or raising insurance deductibles for workers.
Employers said they expect average health benefit costs to rise 7.1 percent in the absence of cost-cutting. That's about 9 percent lower than the increases from each of the last five years.
The lower increase may also be related to patients delaying or foregoing care because of the recession. Employees may also be participating in programs to improve their health at the workplace, according to the report. Employers still expect to pass on significant costs to workers by raising deductibles, co-payments or contributions to insurance premiums, according to the survey.
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