Growth in health benefit cost per employee slowed in 2012

Growth in health benefit cost per employee slowed in 2012
In 2012, growth in the average total health benefit cost per employee slowed to 4.1 percent, according to the National Survey of Employer-Sponsored Health Plans, published Nov. 14 by Mercer.

(HealthDay)—In 2012, growth in the average total health benefit cost per employee slowed to 4.1 percent, according to the National Survey of Employer-Sponsored Health Plans, published Nov. 14 by Mercer.

Researchers from Mercer used a national probability sample of 2,809 public and private employers with at least 10 employees to review trends in Employer-Sponsored Health Plans.

The authors note that growth in the average total cost per employee decreased from 6.1 percent in 2011 to 4.1 percent in 2012, with an average cost of $10,558 per employee in 2012. A higher increase (5.4 percent) and higher average cost ($11,003) was noted for larger employers with more than 500 employees. Assuming employers intend to continue reducing costs, the increase for 2013 should be around 5.0 percent. Cost-saving measures have included workforce , with 78 percent of large employers reporting that senior leadership is supportive or very supportive of these programs. Financial and other incentives and penalties have been implemented to encourage participation in heath management programs (54 percent of large employees).

"Employers are very aware that, in 2014, when the law's provisions kick in, they will be asked to cover more employees and face added cost pressure," Julio Portalatin, president and CEO of Mercer, said in a statement. "They've taken bold steps to soften the impact and it's paying off already."

More information: More Information

add to favorites email to friend print save as pdf

Related Stories

Employer-sponsored wellness programs on the rise

Mar 22, 2012

Organizations in the Chicago area report an increase of health-improvement and wellness programs according to a survey conducted in September 2011 by Aon Hewitt in partnership with Rush Health. The survey results will be ...

Report: Employers to see 2011 medical costs jump

Jun 14, 2010

(AP) -- Companies that offer employee health insurance expect another steep jump in medical costs next year, and more will ask workers to share a bigger chunk of the expense, according to a new PricewaterhouseCoopers report.

Recommended for you

Suddenly health insurance is not for sale

Apr 18, 2014

(HealthDay)— Darlene Tucker, an independent insurance broker in Scotts Hill, Tenn., says health insurers in her area aren't selling policies year-round anymore.

Study: Half of jailed NYC youths have brain injury (Update)

Apr 18, 2014

About half of all 16- to 18-year-olds coming into New York City's jails say they had a traumatic brain injury before being incarcerated, most caused by assaults, according to a new study that's the latest in a growing body ...

Autonomy and relationships among 'good life' goals

Apr 18, 2014

Young adults with Down syndrome have a strong desire to be self-sufficient by living independently and having a job, according to a study into the meaning of wellbeing among young people affected by the disorder.

User comments