As health benefit costs rise, employers work to offset increases

Monday, 22 August 2011 16:00

News - Health Care Costs

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A recent United Benefit Advisors (UBA) Health Plan Survey revealed that there has been a rise in use of consumer-driven health plans (CDHP) over the past year, and that the cost of such programs has risen by 8 percent over the past year.

CDHPs now make up about 23 percent of all insurance plans offered, amounting to a nearly 14 percent growth from 2010.

The survey found that employers are offering higher health reimbursement account or savings account contributions to help offset the rising costs of employee health benefits, from an average of $1,481 last year to $1,656 this year. Contribution rates for families went from $2,857 last year to $3,198 in 2011.

"For the first time in more than seven years of reporting, CDHPs nationally did not create a savings over the clients' in-force plan prior to renewal. This year experienced an increase (2.1 percent), albeit less than the average 8.2 percent increase of all plans," said Bill Stafford, UBA VP of member services.

Additionally, the survey revealed that about 81 percent of companies offering employee wellness programs include health risk assessments.