NU Online News Service, Sept. 28, 12:35 a.m. EDT

Large U.S. employers are expecting to pay an average of $9,821in health insurance premiums per employee in 2011, up from anaverage of $9,028 this year.

Hewitt Associates Inc., Lincolnshire, Ill., has published thosefigures in a summary of results from an analysis of benefits datafrom 350 large U.S. employers.

The 8.8 percent year-over-year increase is the largest Hewitthas recorded in the past five years.

Changes resulting from the Affordable Care Act--the federallegislative package that includes the Patient Protection andAffordable Care Act (PPACA)--are probably causing just 1 percentagepoint to 2 percentage points of the average 2011 increase, Hewittanalysts said.

But Ken Sperling, Hewitt's health care practice leader, said theextra Affordable Care Act costs come as employers are facing theeffects of a weak economy, an increase in the frequency ofcatastrophic claims and a general increase in medical costs.

"Reform creates opportunities for meaningful change in howhealth care is delivered in the U.S., but most of these positiveeffects won't be felt for a few years," Mr. Sperling said in astatement about the health cost analysis. "The incremental expenseof complying with the new law adds fuel to the fire, at least forthe short term."

A Hewitt competitor, Towers Watson & Company, New York, cameup with similar results recently when it looked at underlyinghealth care costs.

The average employee contribution at the employers Hewittstudied may increase about 12 percent, to $2,209, and averageexpected employee out-of-pocket cost total is also increasing about12 percent, to $2,177.

The out-of-pocket cost total includes co-payments, coinsuranceand deductibles.

Preferred provider organization (PPO) plans dominate the groupplan market in most states. Hewitt said it expects the cost of PPOcoverage to increase 8.5 percent between 2010 and 2011, to$9,408.

Between 2009 and 2010, the average PPO coverage cost increasewas 6.3 percent.

To go with the cost data analysis, Hewitt commissioned a surveyof 600 large employers. The firm found that some employers will becharging more for spousal coverage, or charging separately for eachindividual in an employee's family rather than simply providing"employee-only" and "family" coverage. The idea of penalizingemployees who fail to participate in health improvement programs isalso getting more attention.