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Employees expected to pay more for health insurance coveragePosted On Tue, August 31, 2010
Health care costs are expected to continue their upward trend during the next few years. Unfortunately for employees, many will be burdened with absorbing at least some of the costs.
The rise in employee health insurance contributions is nothing new. The National Bureau of Economic Research found that 44 percent of employees had their health insurance fully financed by their employer in 1982, but that number fell to just 28 percent by 1998. Today, having fully-funded health insurance is almost unheard of.
Senior vice president at Aon Consulting says that employees can expect to see health care expenses rise again.
Aon Consulting's 2010 Benefits Survey found that 65 percent of employers are expected to increase what employees contribute for co-pays and out-of-pocket maximums.
"We believe the new health reform law will increase health care costs by 2 percent to 4 percent during the next three years," said Lerche. "In addition, we expect to see new costs related to excise taxes and potential cost shifting from reductions in Medicare reimbursement to providers, which will be on top of existing long-term medical trend inflation."
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