Health insurance for employers is becoming expensive in California
There are concerns in California that health insurance is beginning to become unnecessarily expensive. Consumers are beginning to show worry over higher rates and employers are beginning to report that health insurance coverage is becoming more expensive and, in some cases, too costly to continue offering to employees. These concerns are backed up by a new survey from the California HealthCare Foundation. The survey shows that employer-sponsored health insurance, in particular, is certainly becoming more expensive.
Survey shows costs continue to rise
According to the survey, premiums for employer-sponsored health insurance throughout the state have risen by 170% over the past 10 years. This is growth is five times more than the state’s inflation rate, making health insurance a costly burden for many throughout California. The California HealthCare Foundation suggests that the growing costs of health insurance coverage is causing some employers to consider dropping the benefits they offer workers for the sake of their own finances.
Businesses beginning to find ways to save money
Many businesses are beginning to seek higher levels of contribution from employees in order to continue offering health insurance benefits. The survey shows that 26% of employees at small companies saw their deductibles increase in 2012 as employers began working to cut costs and encourage more contributions from employees. Despite this, however, the survey shows that employees have only experienced a 6.4% increase in their premiums over the last year, down from the 8.1% increase they had seen in 2011 and 2010.
Large businesses expected to continue offering health insurance coverage
As health insurance grows more costly, whether employers will continue to offer health benefits to workers remains unknown. Rising costs are having a prominent impact on small businesses throughout the state. Large businesses, however, are expected to continue offering health insurance benefits to employees even as costs continue to rise. These larger companies are able to fund internal wellness programs that can help cut down on the cost of coverage, where small businesses do not have the capital necessary to do the same.