A recent survey report by the National Business Group on Health, a non-profit association of large employers, indicates that U.S. employers will see their benefit costs raise 8.9 percent in 2011, up from an average increase of 7 percent in 2010. The survey gathered data from 72 of the nation’s largest companies, representing nearly 4 million employees.
In addition to the rising costs, the survey also found that 5 percent of respondents will drop retiree health benefits in 2011, and 60 percent are considering doing so. Along with rate increases, 25 percent of the companies’ surveyed intend to raise the co-pay for retail pharmacy prescription drugs, while 21 percent plan to do the same for mail order prescription benefits.
The cost for benefits is expected to be even higher for smaller companies in 2011. According to the Council of Insurance Agents & Brokers’ Employee Benefits Market Survey released in June 2010, small to medium sized companies can expect cost increases as high as 20 percent over 2010 rates.
Part of the reason for the cost increases is being attributed to health care reform. Specifically, the required extension of coverage to dependents up to age 26, and the removal of lifetime dollar limits on coverage are both expected to drive costs higher.
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Comments
That's a substantial increase in health care benefit costs or projected decrease in retiree health benefits. Still, I'm a believer in the necessity health care reform, so I'll reserve judgment on this until we see how the numbers fall out & the effects of the reform over the long term.
These big businesses CLAIM they are being FORCED to do this but they are doing it to try and strongarm the government into scaling back on forcing them to provide adequate care for their employees. The other wrinkle to this is that over the past decade or so they have been running their companies for the stockholders and the only way to do that is to make a greater profit every year than the last(think ENRON). The way they do that is taking it out of their employees pockets and/or firing them. This is another example of that. They like to use healthcare reform as a scapegoat for their terrible business practices. In reality, short selling their company is catching up to them the same way it caught up with Wall Street and the economy as a whole. And that's a fact... Jack.
So much for expecting help from healthcare reform!
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