The 2020 Mid-Year Economic Update_long

The Growing Burden of Health Insurance on Employers

Two recent studies help employers benchmark their benefits practices.

In light of the debate on health insurance reform in the Congress, it may be helpful for employers to gain a better idea of their part in the system by benchmarking against overall cost trends in health insurance benefits.

MDM has reported two recent studies on the topic, both of which come out annually.
The annual Towers Perrin Health Care Cost Survey, out last month, showed U.S. employers expect an increase of 7% in costs in 2010. The recession has put added pressure on benefits costs for employers, according to the survey. While employers will continue to fund 78% of the average spend, the actual dollar burden on employees has grown.
Employee premium contributions, on average, will rise by 10%, or just over $200, during 2010 – a bigger jump than the 8% increase seen in 2009. This additional burden is exacerbated by indirect cost shifting through benefit design changes such as increased copayments, which add significantly to the overall cost for employees.

More on that survey from Towers Perrin.

MDM also recently reported data from the Kaiser Family Foundation, which also found that cost-sharing between employers and employees is on the rise. Read that MDM article: Survey Shows Increased Cost-Sharing, Reduced Health Benefits.

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