Thursday, September 29, 2011

Driving new benefits survey: soaring medical costs

As Gannett considers potentially big changes in employee benefits, a new study underscores one of the company's biggest challenges: rising employee medical costs.

The average annual premium for family coverage jumped 9% this year, to $15,073, according to the annual Kaiser Family Foundation employer health benefits survey, released yesterday. That's a significantly bigger increase than the 3% last year, the survey found.

Of that annual family premium, employees paid an average $4,129 -- up 3.3% from 2010. Employers paid the rest, $10,944 -- up much more, nearly 12%.

For single coverage, the overall cost averaged $5,429, up 8% from a year ago.

Gannett, like many large employers, is self-insured. That means the company pays for all employee medical costs that aren't covered by employee contributions.

Faced with higher medical expenses, employers have been shifting more of the cost to workers, according to Kaiser. Workers' contributions for family coverage have soared 131% since 2001 vs. 113% for the portion employers pay.

Related: read the full 2011 Kaiser report.

No comments:

Post a Comment

Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."

Note: Only a member of this blog may post a comment.