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Greater expenses anticipated for healthcare next yearPosted On Thu, September 16, 2010
Healthcare costs are continuing their upward trend. A survey by Towers Watson shows that people should brace themselves for an anticipated 8.2 percent employer healthcare costs increase in 2011.
More than 90 percent of employers surveyed said they plan on offering health insurance to their employees. However, more than half reported they believe they will lose their grandfathered status next year and 85 percent anticipate losing their status by 2013.
Towers Watson senior healthcare consultant Ron Fontanetta says some employees may further struggle to keep up with healthcare costs in the future.
"Employees today are adjusting to historically lower-than-average merit pay increases, while at the same time facing higher health care contributions, copays and deductibles," says Fontanetta. "This combination could adversely affect many employees and intensify the growing affordability crisis."
Healthcare reform, however, is designed to make healthcare more affordable and accessible.
Regardless of grandfathered status, this month health insurance plans will no longer be able to set lifetime limits on benefits and must extend coverage to adult children under the age of 26 on their parent's plan.
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