Health cost increases hold steady-for now; Consumerism helps keep average hike at 6.1%, Mercer finds.(Mercer Health & Benefits L.L.C.)

Business Insurance, November, 2006 by Wojcik, Joanne

Byline: JOANNE WOJCIK By stressing consumerism and heath care management, U.S. employers have successfully managed to keep the rate of increase in group health plan costs steady in the past two years. In 2006, group health care plan costs increased 6.1% to an average of $7,523 per employee, up from $7,089 in 2005, according to a survey of nearly 3,000 employers by Mercer Health & Benefits L.L.C.

in New York. That 6.1% increase for 2006-identical to the rise in 2005-follows years of much steeper cost hikes. Health care costs jumped an average of 14.7% in 2002, 10.1% in 2003 and 7.5% in 2004. However, if past performance is any indicator of future trends, it is unlikely the lull will be sustained for yet another year, warns Blaine Bos, a Mercer worldwide...

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