Employer Health Care Costs Expected to Rise 7% in 2013, Multiple Approaches to Control Costs

By CAHP –

August 13, 2012: A new survey by the National Business Group on Health finds that large employers in the U.S. expect the cost of employer-provided health care benefits to increase 7% in 2013 and that these employers plan to address rising costs through a variety of cost-control measures.

Six in ten companies expect to increase employees’ share of premium contributions by less than 5%. Four in ten plan to increase in-network deductibles, and one-third to increase out-of-network deductibles and out-of-pocket maximums.

Despite the strategies listed above, employers no longer view cost sharing as the most effective cost control tactic compared to last year. This year, 43% of companies said consumer directed health plans are more effective at controlling costs while one in five cited wellness programs. In fact, wellness incentives for 2013 are expected to increase from an average of $300 to $450 for the employee and from $250 to $375 for dependents.

Source: John & Rusty Report via Choice Admin