Employee group health benefit costs for businesses continued arapid increase over the past six months, and a majority ofemployers, regardless of size, paid a lot more to renew, a producergroup reports.

Those findings were contained in the spring Employee BenefitsMarket Survey by the Council of Insurance Agents and Brokers(CIAB).

Agents and brokers responding to the survey said the cost ofgroup medical care increased for 81 percent of their smallaccounts–those with 50 or fewer employees. Respondents said 54percent of renewals were between 11- and 15 percent higher.

Similarly, 90 percent of the agents said their medium-sizedclients experienced increases in group medical costs, with 47percent falling in the 11-to-15 percent range.

Three-quarters of those polled said their large clients–thosewith 501 or more employees–paid more for their group medical plans,with the largest number of increases (43 percent) in the 6-to-10percent range.

CIAB said most employers, despite the cost increases for groupmedical insurance, are continuing with traditional coverage plansand shifting costs to employees in the form of higher deductiblesand co-pays as opposed to limiting options or discontinuingcoverage.

High-deductible health plans (HDHP) and Health Savings Accounts(HSA) or Health Reimbursement Accounts (HRA) being promoted by theBush administration as a way to control medical costs are stillslow to catch on, CIAB's survey found.

Three-fourths of the respondents said shifting employees toHDHPs coupled with either an HSA or HRA is being selected by fewerthan 30 percent of their clients. But 80 percent of the respondentssaid they had either sold an HDHP-HSA plan for 2007, or had aclient looking at one for 2008.

CIAB reported that one broker respondent from the Midwest said:“The majority of our clients are beginning to increase thedeductibles to reduce the overall increases. The HSA plan designshave not provided enough savings to warrant making the change, sothey are staying with a higher deductible with office visit andprescription co-pay.”

CIAB quoted another broker as saying the HSA approach is“becoming more viable for the right employer who has the rightmindset.”

According to CIAB, there are signs HAS approaches are becomingmore attractively priced. When the plans are added, the agentsagreed, most are as an option rather than the only choice on thebenefits menu.

A broker from the Northeast told CIAB: “More groups are lookingat high-deductible plans, but not many are implementing. If theydo, it is as an option–not a replacement.”