Employer Responses to Rising Health Care Costs

Employers, in general, are continuing to piece together an approach to deal with rising health care costs. They expect to continue to increase employee premiums, co-pays and percentage contributions. According to Watson Wyatt Worldwide, 84% of employers plan to increase employee premium contributions, and 53% plan to increase employee co-pays or coinsurance in 2004.

It is estimated that more than half of the companies will absorb at least a portion of the expected increases. This means that many companies will be forced to either grow their business or reduce overhead.