Employers’ Health Costs Increase With Wide Variations by Occupation, Establishment Size, Analysis Finds

"Employer Health Insurance Costs and Worker Compensation," Kaiser Family Foundation: The study, part of the Foundation's online Snapshots: Health Care Costs series, analyzes data from the National Compensation survey, a nationwide survey of labor costs in public and private establishments conducted quarterly by the Bureau of Labor Statistics. The study finds that costs for employers who offered workers' health coverage increased by an average of $2.59 per hour in 2005 -- nearly one dollar higher than the cost six years earlier. The median cost of health coverage as a share of payroll increased from 8.2% in 1999 to 11% in 2005, according to the study. In addition, the study finds that health insurance costs for employees in lower-paid jobs -- such as sales, services and laborers -- were smaller in hourly dollar amounts compared with higher-paid jobs -- such as professionals, executives and technicians. However, the health costs for lower-paid occupations made up a larger percentage of payrolls because of their lower average earnings. Larger companies had greater health benefit costs, both on an hourly basis and relative to payroll costs, even though their payroll costs were greater, according to the study (Kaiser Family Foundation release, 3/14).