Daily News

Employers' cost for medical coverage will rise 6.4 percent next year. The increase would be higher but companies continue to shift more of the total expense to employees.

This year, employers saw health-benefit costs climb 6.3 percent after increasing deductibles, co-payments and workers' portion of premiums, according to an annual survey by Mercer, a firm that advises companies on medical insurance.

For example, the median deductible for PPO health plans jumped to $1,000 this year, up from $500 in 2007, according to the national survey of 2,900 employers. That means workers paid more out of pocket before insurance coverage kicked in. PPOs are the most popular type of health plan, covering 69 percent of employees.

"More and more, people are going to pay when they access health-care services," said Steve Graybill, a principal with Mercer in Charlotte. "We have unprecedented times in our economy, and employers are trying to manage these cost increases."

Increases of 6 percent a year, while tame compared to the double-digit hikes seen earlier this decade, remain well above the overall inflation rate, driven higher by an aging population, rising costs for services and drugs, and other factors. Soaring prices for medical coverage come amid higher costs for food and other household bills. (more…)

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This entry was posted on Thursday, November 20th, 2008 at 5:57 am and is filed under Daily News. You can follow any responses to this entry through the RSS 2.0 feed.