The average growth in health benefit cost will slow to 5.4% in 2012, the smallest increase since 1997, according to early responses from a Mercer survey still in the field. Still, cost growth remains well above both general inflation and growth in workers’ earnings.
While this increase reflects cost-cutting changes employers will make to their current health benefit programs, says Mercer, such as raising deductibles or moving employees into lower-cost health plans, the preliminary survey findings suggest that the underlying trend has slowed as well.
Asked how much costs would rise if they made no changes to their current plans, employers reported an average increase of 7.1%. Over the past 5 years, this underlying health benefit cost trend has been running at about 9%.
Manali
pgdm 3rd sem
While this increase reflects cost-cutting changes employers will make to their current health benefit programs, says Mercer, such as raising deductibles or moving employees into lower-cost health plans, the preliminary survey findings suggest that the underlying trend has slowed as well.
Asked how much costs would rise if they made no changes to their current plans, employers reported an average increase of 7.1%. Over the past 5 years, this underlying health benefit cost trend has been running at about 9%.
Manali
pgdm 3rd sem
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