-Caveat Lector- It's time to do away with for profit health care. Costs will always rise where the system must cover its own costs AND profits for businessmen and corporations. It's time for Socialized medicine. -- Nurev ============================================ Employer health-plan premiums rise; fewer jobs offering insurance By THERESA AGOVINO Associated Press NEW YORK (September 6, 2001 09:42 a.m. EDT) - Premiums for employer-sponsored health insurance plans have climbed 11 percent this year - the biggest jump in nearly a decade - pushing companies to consider requiring workers to pay more out of their own pockets while reversing a growing trend of more companies offering coverage. >From the spring of 2000 to the spring of 2001, annual premiums for employer-sponsored plans grew to $2,650 for single coverage and $7,053 for family coverage, according to a study of 2,734 companies conducted by the Henry J. Kaiser Family Foundation and the Health Research & Educational Trust. The previous year, premiums increased an average of 8.3 percent, while premiums rose 4.8 percent in 1999. This year's increase has employers thinking about shifting more of the cost to employees - a prospect more palatable since the red-hot job market has cooled, making it more difficult for workers to jump ship should they be upset by changes in benefits. According to the study, being released Thursday, 44 percent of companies were either "very likely" or "somewhat likely" to increase employee premium costs in the next year. Workers pay an average of $30 a month for single coverage and $150 a month for family coverage. "It is interesting to see how quickly you can see the effect of rising premiums in a slowing economy," said Larry Levitt, co-author of the study and vice president of the Kaiser Family Foundation. "The time of increases in health care costs being offset by employers has come to a screeching halt." That's unlikely to change unless the economy drastically improves because other organizations that track health care costs are forecasting double digit increases for 2002. For example, management consulting firm Towers Perrin predicts health care costs will rise nearly 11 percent next year. Meanwhile, the rising costs are causing fewer companies to offer health benefits. From 1998 to 2000, the percentage of companies offering health benefits grew from 55 percent to 67 percent, according to the Kaiser study. This year, the percentage dropped to 65 percent. Levitt said once companies start offering insurance, they rarely drop it. Yet, he fears as small businesses offering health insurance close because the economic slowdown, they will be replaced by other small companies who simply don't offer the option. "There are just no new ideas for controlling costs. I think we are going to see a lot more bad news," Levitt said. The trend of shifting the cost of health care to the worker has already taken root in some companies. For example, the average deductible for an employee choosing a doctor outside the network in a Preferred Provider Organization grew from $361 last year to $407 this year. Co-payments for prescription drugs increased to $20 this year from $16 last year. Still, from 1996 to 2001, the percentage of the premium a single employee paid dropped to 14 percent in 2000 from 21 percent in 1996. It did increase to 15 percent this year. However, the percentage paid for family coverage has been constant at 27 percent or 28 percent for the last five years. Employee costs have increased slightly even as the percentage of the premium they pay has remained constant. This year, single coverage rose $2 to $30 a month; family coverage rose $12 to $150. Employers primarily blame the premium hikes on prescription drug costs. Sixty-four percent of employers say drug spending contributed "a lot" to the overall costs. Other factors cited as cost drivers were higher spending on hospital and physician care, insurance company profits and better medical technology. Employers say that even though the economy has cooled and they don't fear losing employees, they still don't want to pass through rising health care costs - even though many are. Rochester, N.H.-based Enterasys Networks Inc. has seen its health care premiums rise for the past three years. This year costs for the two plans it offers workers rose an average of 18 percent. As a result, the computer networking company plans to increase employee premiums Jan. 1, $10 for singles to $45 or $55, and by $20 to $25, to $155 or $185, for families. "We hate passing costs forward but we had to. We just couldn't eat it all again this year," said Michael Newman, manager of compensation and benefits. Both the Kaiser Family Foundation and the Health Research Educational Trust are nonprofit think tanks that focus on health care. --------------------------------------------------------------- This article is protected by copyright and should not be printed or distributed for anything except personal use. You can find this story on the web at: http://www.nandotimes.com/business/story/74007p-1044320c.html <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. 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