Chicago Employers Passing On Health Insurance Increases to Employees

Employers are passing large health insurance increases on to their employees, larger than the increases they are even facing.  According the The Chicago Tribune’s Peter Frost, Chicago employers are increasing the percentage of health care costs paid by employees by 9% this year.  The article “Increase in employer health insurance costs at a 5-year low” points out that large employers in Chicago only saw their health insurance costs increase by 3% this year.  While it is still an increase in their costs, this is the lowest increase in the past five years.  Costs went from $10,434 annually per employee to $10,753 this year.  This Chicago specific data came from a study done by Aon Hewitt, which compiles data for 516 large companies in the United States.

The 9% employee increase comes through higher premiums and out-of-pocket expenses like co-pays, deductibles, and coinsurance.  Costs per employee went from $4,715 in 2013 to $5,135 this year.  Unfortunately for employees, their costs are expected to rise another 9% next year to $5,613.  Workers are paying 22% of their overall health care premiums, an increase of close to 20% over the past ten years.  Forty-seven percent of employers have increased employee costs related to health care in the last year.  Almost as many companies said that they plan to do so as well within the next five years.  Aon predicts the smaller employer increases ending soon and anticipates that Chicago will see a 6.6% increase in 2014, based on changes from the Affordable Care Act.

You are considered lucky if you have health insurance coverage through your employer, even with premium or out-of-pocket costs that are increasing.  If you want to compare health insurance plans and see if you can get a more affordable individual plan, Compare Health Rates can help you with that.  Make sure to compare all of the details before making any big health insurance changes.

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