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Salem Benefits Health Insurance
Latest News

5.15.09

Maximum HSA contribution to rise in 2010
The maximum contributions that can be made to health savings accounts in 2010 will increase read more

5.14.09

HSA Enrollment Continues to Rise
Enrollment in health savings accounts linked to high-deductible health insurance plans continues to surge, with 8 million people covered by HSAs as of Jan. 1 read more

2.19.09

Employers Face Plenty of COBRA-Related Compliance
With the average cost of a family plan in 2008 totaling $12,680, according to the Kaiser Family Foundation?s survey on health care costs, employers will pay an average of $8,242 per family plan before deducting that expense from p read more


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Salem Benefits Group
723 Coliseum Drive
Suite 103
Winston-Salem, NC 27106
336-723-6600
info@salembenefits.com
Latest News

Tuesday, January 20, 2009

Health benefit costs continue to rise, survey show

By Lydell C. Bridgeford
January 20, 2009

New data by Towers Perrin suggests that employers will pay, on average, $9,552 per employee for health benefits in 2009, a jump of 6% from 2008. Yet some employers will buck the trend because they proactively manage their benefit programs.

In its 2009 Health Care Cost Survey, the HR consulting firm reveals that high-performing companies (those that rigorously track their health benefit objectives) will spend, on average, 12% less in annual health care premiums in 2009, compared to low-performing companies.

For example, high-performing firms report health benefits costs $8,904 per employee, compared to $10,104 for low-performing companies. The cost fell even lower (to $7,032) at high-performing companies utilizing consumer-driven health plans with health savings accounts.

The survey defined high performers as companies that not only had a strong commitment to improving employee health and engagement, but also aggressively managed their health plans and the delivery process.

Other key findings in the survey included:

  • Large employers are experiencing health care cost increases of 6% on average, or $532 per employee per year. Although this year's average percentage increase is similar to last year's, employers are paying 29% more today than they spent five years ago for health care.
  • In flat dollar terms, the employee share in 2009 will average $80 per month ($960 annually) for employee-only coverage and $273 per month ($3,276 annually) for family coverage - a significant cost for many employees.
  • Pre-65 retirees will contribute approximately 51% of the premium for retiree-only coverage, and 54% for family coverage.
  • Retirees age 65 and older will pay an average of $148 per month (or $1,776 annually) for retiree-only coverage and $309 per month (or $3,708 annually) to add coverage for one dependent.

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