An annual report from the California HealthCare Foundation shows that the cost of employer-sponsored health coverage continues to rise far faster than inflation, depleting the resources of companies and workers.
"California Employer Health Benefits Survey 2009" reveals that between 2002 and 2009 health insurance premiums jumped 117.5 percent, while California's overall inflation rate increased 23.1 percent.
In 2009, the average premium increase for employers offering unchanged benefits was 7.5 percent.
To keep premiums lower, many employers are shifting to less expensive plans that require employees to shoulder more of the cost.
Some examples listed in the report include:
- In 2009, more than 20 percent of covered workers in small firms had a deductible of $1,000 or more, compared to just 7 percent in 2006.
- Among workers enrolled in PPOs, fewer are protected by low out-of-pocket limits.
- Workers are more likely to be in a health plan with a cap on lifetime benefits than they were in 2004.
The report suggests that the outlook for employees with employer-sponsored benefits may worsen in 2010. When surveyed about possible changes in the coming year, 6 percent of California employers say they are "very" likely to drop coverage, compared to 1 percent last year.
Additionally, 27 percent of California employers say they are "very" or "somewhat" likely to increase employee co-insurance or copays, while 44 percent of large and 20 percent of small employers say they are "very" likely to increase the amount employees pay for health insurance premiums.
The report was published as part of the CHCF California Health Care Almanac, an online clearinghouse for key data and analysis examining California's healthcare marketplace.