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Survey: In face of rising costs, fewer companies offer health benefits

Patient Financial Services Weekly Advisor, September 16, 2005

As health insurance costs rise, the number of companies offering health benefits to their employees are on the decline, according to a national survey by the Kaiser Family Foundation.

The survey found that about 60% of companies nationwide offer health benefits to employees, compared to 69% in 2000. Most of the companies that eliminated health benefits have fewer than 200 employees.

The annual survey estimated insurance premiums rose this year by an average of 9.2% nationwide, compared to 11.2% last year and 13.9% in 2003. But foundation President Drew Altman warned the dips are normal.

Premium costs are rising at about three times the rate of increase of the average worker's earnings and at about two-and-a-half times the rate of inflation, according to the survey.

It also found that most workers were covered by PPOs. HMOs covered 21% of workers, according to the survey. Only 3% of workers have traditional indemnity insurance plans.

About one-fifth of employers now offer high-deductible health plans. Only 1.6 million people are enrolled in such plans, according to the survey.

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