Employers To Continue To Offer Health Insurance to Workers, Study Finds

U.S. employers will continue to offer health insurance to employees but will ask workers to contribute more to cover the cost, according to a study released on Thursday by the Employee Benefit Research Institute at a forum sponsored by the group, CQ HealthBeat reports. According to the study, which involved a survey of employers, 59% of respondents said that they will continue to offer health insurance to employees, a decrease of 9% from 2000 but the same as the percentage in 1996 (Lubbes, CQ HealthBeat, 12/6). About 71% of employees received health insurance through their employers in 2007, compared with 73% to 75% between 1994 and 2000, the study found.

The study said, "While a four percentage point drop in the number of workers with health benefits may be significant, it does not imply that these benefits are vanishing" (Stafford, Kansas City Star, 12/6). Employers would only drop health insurance for employees in the event that they lost related federal tax breaks, according to the study. In addition, the study found that more employers plan to begin offering consumer-driven health plans to help reduce costs (CQ HealthBeat, 12/6).

The cost of health insurance for employers doubled between 2000 and 2007, the study found. Between 2000 and 2007, the cost of premiums for single coverage increased by 86%, and the cost of premiums for family coverage increased by 80%. Copayments for nonformulary brand-name medications increased by 124% between 2000 and 2007, according to the study (Kansas City Star, 12/6).

The study is available online (.pdf).