U.S. companies enjoyed a nine-year low in healthcare cost rate increases this year, but employers and employees should not expect to see that trend continue in 2008, according to Hewitt Associates, a global human resources services company. In 2007, average healthcare rate increases were 5.3 percent, down from 7.9 percent in 2006. However, Hewitt is projecting an 8.7 percent average increase for employers in 2008.
According to Hewitt, the average health cost per person for major companies will increase from $7,982 in 2007 to $8,676 in 2008. The amount employees are being asked to contribute in 2008 will be $1,859, representing approximately 21 percent of the overall healthcare premium and up from $1,690 in 2007. Average employee out-of-pocket costs, such as copayments, coinsurance, and deductibles, are also expected to increase from $1,576 in 2007 to $1,738 in 2008. Overall, employees’ total healthcare costs--including employee contribution and out-of-pocket costs--are projected to be $3,597 in 2008, up 10.1 percent from $3,266 in 2007.
Hewitt’s healthcare cost data are derived from the Hewitt Health Value Initiative, a cost and performance analysis database of more than 1,800 health plans throughout the United States, including 400 major employers and more than 18 million health plan participants. Read the press release.
