Employer health costs projected to jump 9 percent in 2011

[Ed Barrow]

Source: The Hill

The cost for businesses providing health coverage to employees will jump by 9 percent in 2011, according to a report released Monday by PricewaterhouseCoopers. The figure would be higher, but analysts predict employers will shift more costs to workers next year.

The projection — on which the new health reform law has only a small influence — is less than the 9.5 percent hike estimated for this year, but remains several times higher than the growth of the economy, squeezing employers amid already difficult economic times.

The report arrives just as the Obama administration is unveiling new rules designed to prevent businesses from dropping health insurance benefits for their workers.

Rising hospital costs will be the most significant factor behind the increase, the analysts predict, as hospitals try to make up for a looming decrease in Medicare payments by shifting those costs to businesses and private insurers. After nearly a decade of big increases, Medicare rates for hospitals are scheduled to fall in 2011.



Read more: http://thehill.com/blogs/blog-briefing-room/news/103029-employer-health-costs-projected-to-jump-9-percent-in-2011

[napi21]

1. Why are they forcasting smaller medicare payments? I don't

hearing that during the HC discussions. In fact, I heard several states in the midwest complaining that if their reimbursements weren't brought inline with the larger cities, their hospitals would close.

I also want to know why HC always claims that THEIR COSTS ALONE will rise5-15 time those of other industries. It still sounds to me like the ins. execs are trying to insure they keep getting those billions in bonuses, no matter what!

[SocialistLez]

2. One report says rises in health care costs are going down.... NT