Organizations expecting a 7.2 percent hike in insurance costs next year

Thursday, 18 August 2011 16:00

News - Health Care Costs

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In light of expectations that employee health benefit costs will surpass the rate of inflation by double, administrators report that they plan to shift some of those expenses onto staff members, according to a report by the National Business Group on Health (NBGH).

A survey by the organization revealed that many employers expect a 7.2 percent increase in health insurance costs. This is 0.2 percent less than last year's hike, but still well above the growth expected in business profits.

Rising costs combined with a slow economy present some difficult challenges for organizations.

"Employers are being much more aggressive in their use of cost sharing techniques and cost control programs, and are making certain that employees have more reasons to be cost-sensitive health care consumers," said Helen Darling, president and CEO of NBGH.

A total of 53 percent of survey respondents said they plan to increase employee premiums on health insurance, and 39 percent revealed plans to increase deductibles.

Considering that higher costs and lower profits contribute greatly to workplace stress, and chronic anxiety is associated with a host of physical and mental conditions, these findings suggest that employee wellness programs may be able to help. Providing workers with the tools and resources to manage their stress has been shown to be an effective strategy in improving staff health, strengthening employee performance and reducing costs stemming from insurance benefits.