Health care costs for workers are skyrocketing. That’s the word from a report just released by Aon.
“The average health care rate increase for mid-sized and large companies was 3.2% this year, the lowest since the consulting firm Aon started tracking it in 1996. Despite this, the average amount workers have to contribute toward their health care is up more than 134% over the past decade and that trend will accelerate.”
Forbes Magazine wrote, “the strategy of shifting costs onto workers has escalated as companies raise co-payments, deductibles and emphasize so-called “consumer-directed health plans” that generally come with higher cost sharing.”
Some financial experts claim one of the reasons employees are footing more of the bill is because of the upcoming ‘cadillac tax’ that begins in 2018. According to a story on CNBC.com:
This tax — which some members of Congress want to kill — penalizes companies for having especially generous cost sharing beginning in January 2018. High deductible plans are the easiest way to avoid the tax.
“No question change is afoot and the excise tax is a catalyst for change,” says Randall Abbott, a senior strategist in consulting firm Towers Watson’s health and group benefits practice.
The graphic below indicates that workers now pay about $600 dollars more per year (on average) than they did five years ago for their health care premiums. The total worker share (premiums and out-of-pocket costs) is expected to top $5,000 next year. A far cry from the 2005’s combined total of $2,001.
Are costs going up at your organization? Can anything be done to slow the increases or do you believe that rising costs are inevitable? Let us know what you think.