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