Inflation in Health Benefits Highest Since 2004; Deductibles Reach $1,200

Growth in the average total health benefit cost per employee rose 6.9 percent in 2010 to $9,562, the biggest increase since 2004, according to a survey by Mercer.

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Mercer’s National Survey of Employer-Sponsored Health Plans, surveying employers with 10 or more workers, also found that the average deductible for PPOs reached $1,200 in 2010.

Overall, health benefit costs rose three times faster than the consumer price index in 2010. As the costs of HMOs rise, HMO offerings fell from 28 percent of all employers in 2009 to 26 percent in 2010.

To contain their rising costs, employers have been implementing health management programs, which helped those extensively using them to keep cost increases 2 percent lower than those of other companies for the second year in a row.

Read the Mercer release on rising health insurance costs.

Read more coverage of employee benefits.

Survey: 30% of CFOs Plan to Reduce Employee Healthcare Benefits

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