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March 28, 2006
Healthcare Costs Continue to Rise

Employers will pay almost $600 more per employee this year in health care costs, according to a recent Towers Perrin survey. This brings the average annual cost of providing health care to $8,424--a whopping 140 percent increase over the past 10 years.

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Employers will continue to shoulder most of the burden, absorbing 74 percent of the total cost increase. Overall, employers will pay 80 percent of premium costs and employees will pay 20 percent.

"The health care crisis has become a chronic problem for U.S. employers and employees alike," says David Guilmette, managing director of health and welfare for Towers Perrin. "There is a fundamental tension between managing costs and managing people that constrains how much of the cost can be shifted to employees."

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