Why Employer Health Insurance Cost Reductions Are A Bad Thing

Why Employer Health Insurance Cost Reductions Are A Bad Thing in Group Health Insurance

Employers might be rejoicing that their health insurance costs will increase at a slower rate next year, but it’s not necessarily a good thing.

Why? Unfortunately, the employer’s savings is going to be at the employees’ expense.

First, here are the facts:

A recent survey from by consulting firm, Mercer, found health insurance costs for employers will increase by 5.7 percent in 2009. That’s a slower increase since 2005, when employers’ health insurance costs have gone up by around 6 percent every year, reported The New York Times.

So how are employers lowering costs for themselves? By shifting the burden on their workers, wrote the NY Times article.

Mainly, they will do this by offering less comprehensive plans.

So if you have a group health insurance plan with an employer, next year there’s a good chance you might be on the hook for higher premiums, higher copays, higher coinsurance, and/or higher deductibles.

Well, here’s to employer health insurance costs increasing faster in 2010!

Comments[0]