Workers' Healthcare Benefits Costs Rise
NU Online News Service, Sept. 6, 9:09 a.m. EST?A survey by a health research group finds employers cutting back sharply on workers' health benefits while asking them to pay more in premiums.
The trend is being driven by rising healthcare costs and the downturn in the economy, according to the Kaiser Family Foundation/Health Research and Educational Trust in Washington, which did the research.
Health premiums have increased 12.7 percent–the highest increase since 1990. Single premiums are now, on average, $3,060 for single coverage, and $7,954 for family coverage, the annual survey of employer health benefit plans found.
The survey also determined that the amount employees pay for coverage has risen substantially. For single coverage, employees now pay an average of $454 per year–up 27 percent from last year. The employee share of premiums for family coverage averaged $2,084 per year–a 16 percent hike.
The survey also found that deductibles for preferred provider organization in-network providers rose 37 percent to $276 in 2002, up from $201 last year.
The survey also showed that the use of three-tiered cost sharing has nearly doubled since 2000–from 29 percent to 57 percent this year. The cost of drugs within these tiers is also higher–brand name drugs with generic substitutes now cost $26 per prescription, up from $20 per prescription in 2001.
Nine percent of large firms (200 or more workers) eliminated retiree benefits for new-hires or existing employees in the last two years, according to the survey.
The annual survey of employer health benefit plans was conducted between January and May of this year, and surveyed 3,262 randomly selected public and private firms ranging in size from three to more than 300,000 employees.
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