Towers Perrin Health Care Cost Survey Projects That Average Annual Per-Employee Cost for 2008 Will Exceed $9,300

Source: Health Care Cost Survey, Towers Perrin, 2007

From the press release:

STAMFORD, CT, SEPTEMBER 24, 2007 — As employers across the United States get ready to unveil next year’s health plan changes — and the costs associated with them to America’s workers and retirees, new data from Towers Perrin indicate that the average corporate health benefit expenditure in 2008 will be $9,312 per employee — an increase of 7% over 2007.

According to Towers Perrin’s annual Health Care Cost Survey, which for nearly two decades has offered the industry’s most in-depth, prospective look at the upcoming year’s health care costs for employers, employees and retirees, the 7% growth rate projected for 2008 is among the lowest of the last five years. While the trend is holding steady for the broad respondent group, the survey shows a significant cost differential for companies that are actively — and effectively — managing program performance. Those “high-performing companies” will see annual per-employee costs of about $1,500 less than low performers in 2008, a significant advantage in today’s intensely competitive markets.

Nevertheless, the cumulative effect of rising costs continues to produce record-high numbers for employer-sponsored health plans and employee contributions, and the burden is felt most acutely by lower-wage workers and those who retire before becoming eligible for Medicare.

See also:
2007 Health Care Cost Survey

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