Large Employers Expect Group Health Care Plan Costs to Rise 7% in 2013

Large employers estimate that the cost of their group health care plans will rise an average of 7 percent in 2013, the same percentage hike that they expect this year, according to a survey released Aug. 6.

“Rising health care costs continue to plague employers at an alarming rate,” said Helen Darling, president and CEO of the National Business Group on Health. The NBGH survey is based on the responses of 82 members of the Washington-based organization.

Amid rising costs, employers say adopting consumer-driven health plans is the most effective step they have or plan to take to combat rising costs.

Forty-three percent of respondents said CDHPs are their most effective strategy to control costs, compared with 19 percent who said wellness initiatives are the most effective tactic, and 9 percent who said increased employee cost-sharing was the most effective strategy.

Under a CDHP, employees face very high deductibles for many medical services. CDHPs are linked to either health reimbursement arrangements, which employers fund and employees can use to pay for costs that fall under their deductibles; or health savings accounts, to which employees and/or employers can contribute.

Among respondents that say they will offer a CDHP in 2013, 79 percent say they will offer a CDHP linked to an HSA in 2013, up from 75 percent in 2012, while 29 percent will offer a CDHP linked to an HRA, up from 16 percent in 2012.