Issue:  2006-08-31

Employers HC Costs Still Rising, But at Slower Rate

♦ New York

ALBANY, N.Y., August 31 – Employers health insurance costs for employees continued to increase over the past year, although there are signs that pressure on the employer costs is moderating slightly, according to a report released by The Business Council of New York State, Inc.

Some 77 percent of employers responding to the councils annual survey reported increases in their health insurance premiums, with an average increase of 12.3 percent. Last years survey showed that 84 percent of employers paid an increase in premiums, with an average increaseof 12.7 percent.

The survey showed that:

37.2 percent of New York employers increased their employees portion of health insurance premiums. Last year, that figure was 43 percent;

23.4 percent of New York employers increased deductible levels. Last year, the percentage was nearly 33 percent;

8.8 percent reduced benefits. Last year, the percentage was 8.1 percent.

The increase in health insurance costs reflects a trend of many years. In 2001, 2002, 2003 and 2004, the same annual survey showed at least 70 percent of the respondents reporting increases in their health insurance premiums, with the average increase in each of those years at least 13 percent.

Compdata Surveys of Kansas City conducts the annual survey on compensation practices for The Business Council.

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