Anyone who has employer-based health insurance knows that costs have been rising significantly over the past decade.  As health care costs rise, so do health insurance premiums and employers can only take so much of the hit.  They experience higher costs, therefore they cannot afford to pay for as much as they used to for their employees’ health insurance packages.  There is some relief in sight though according to the article “Health Insurance Costs Slowing for US Employers As Firms Cut Costs” by Chris Greenhough on Inquisitr.com.

Employers throughout the nation are hoping to pay less for their employees’ health insurance in 2012.  Employees may still end up paying a price for the companies’ lower health insurance rates.  Companies may be moving employees into lower-cost health plans with fewer benefits and raising their out-of-pocket costs.  Each company will handle the changes differently.  Overall, a recent survey from Mercer consultancy, shows that health benefits costs will rise around 5.4% which is the smallest increase since 1997.  This could translate to big savings for employers if they accounted for a bigger increase this year.

Mercer points out a few reasons for the smaller increase.  With the economic downturn, more people are staying away from doctors to avoid pricey deductibles.  Also, more and more employers are offering health and wellness programs to their workers which may be paying off.  Earlier risk detection and prevention are key in lowering overall health care costs.  Through health education, workers are remaining healthier and may be visiting doctors less because of this.  Companies will likely still raise premiums and co-payments, but hopefully it won’t be as big of an increase as workers have seen in the past.  Final results of all 2800 employers reviewed in Mercer’s survey will be released by the end of 2011.

Written by Sam Tabes

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