Employer health costs up 5 percent in Minnesota

Star Tribune (Minneapolis, MN)

Oct. 30--Employer-sponsored health plans in Minnesota are reporting a 5 percent increase in benefit costs for active employees, according to survey results released Tuesday that document a growth rate roughly comparable with last year.

The survey from the consulting firm Mercer found that the average health benefit cost per active employee is now $13,228, with workers covering one-fourth of the total premium cost.

Mercer surveyed 60 firms in Minnesota as part of a national study that found the average total health benefit cost per employee is up 3.6 percent this year across the country.

"While overall cost growth remains moderate, averaging 3.3 percent annually over the past five years compared to 5.7 percent over the prior 10-year period, it continues to outpace inflation," the New York-based consulting firm said in a news release. Smaller employers were hit with higher cost increases, Mercer said prompting many to add high-deductible health plans.

Earlier this month, the California-based Kaiser Family Foundation issued its annual report on trends in employer-sponsored health insurance, which documented growth in both health plan deductibles as well as an increase in the average premium for family coverage to nearly $20,000.

In its report, Mercer says "more midsize and large employers are foregoing the short-term savings offered by cost-shifting and turning to strategies addressing care delivery and health management."

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