The rising cost of healthcare isn’t just a Canadian-employer concern. Our American counterparts are struggling with the same issues, new report finds.
Annual premiums for employer-sponsored family health coverage in the U.S. are up 4% from last year, according to the Kaiser Family Foundation/Health Research & Educational Trust (HRET) 2012 Employer Health Benefits Survey released on September 11.
Although this increase is moderate by historical standards, it has outpaced the growth in workers’ wages and general inflation, which was 1.7% and 2.3% respectively.
Since 2002, premiums have increased 97%—three times as fast as wages (33%) and inflation (28%).
Employer expectations for 2013
Employers were asked in August whether they had information about possible changes in premiums (or total cost for self-funded plans) for their current health plan. The average increase reported by employers who had received information for their current plan is 7%. However, the initial numbers given to employers were just estimates and costs could go up or down from there next year.
As plan costs continue to increase, insurers should be wary that plan sponsors may start looking to different providers and options. This year 54% of employers who offer health benefits reported that they had shopped around for new coverage. Of that group 18% switched carriers and 27% changed the type of plans they offer.