HVAC Breaking News

Nov. 15, 2004: Health Care Costs Increase But Show Signs Of Moderating

November 15, 2004
/ Print / Reprints /
/ Text Size+
LINCOLNSHIRE, Ill. - U.S. health care cost increases escalated sharply again this year, but may begin moderating next year, according to human resources services firm Hewitt Associates. For 2005, Hewitt is projecting an 11.3 percent average increase for employers, which is lower than 2004's 12.3 percent increase.

While most large companies will continue to absorb the majority of next year's cost rate hikes, says Hewitt, many are struggling under the continued double-digit increases, and are making plan design changes, such as raising copayments, deductibles, and out-of-pocket limits, and increasing employees' share of health care premiums. Hewitt projects that the average employee contribution for 2005 will be $1,481, representing 19 percent of the overall health care premium, and up from $1,288 in 2004.

"Rapidly increasing health care costs continue to be a major burden for employers and employees," said Jack Bruner, national health care practice leader for Hewitt Associates. "While this problem is clearly not going away, there are some signs of moderation indicating that the cost savings initiatives employers began implementing several years ago - such as disease management and wellness programs and a focus on greater consumerism - are beginning to bear fruit in terms of reducing hospitalization costs, helping to stabilize prescription drug costs and driving more effective utilization."

For more information, visit www.hewitt.com.

Publication date: 11/15/2004

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.



Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.


Kyle Gargaro, editor-in-chief of The NEWS, hosted the 2014 ACCA CEO Forum. At the event, six well-known, highly respected company executives, Gary Michel, Ingersoll Rand/Trane; Chris Nelson, Carrier Corp.; Chris Peel, Rheem Mfg. Co.; Rod Rushing, Johnson Controls; Brent Schroeder, Emerson Climate Technologies; and Doug Young, Lennox; provided individual industry outlooks and fielded questions directly from attending contractors. Listen to the entire event on the NEWSMakers podcast. Posted on April 14.

More Podcasts



NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe


Which statement on service calls best applies to your business?
View Results Poll Archive


2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con