Employer health costs rise in California

To offset the increases employers will be passing the increase along to employees...BD

Premiums for employer-based health insurance rose 8.3 percent in California in 2007, well ahead of the national gain of 6.1 percent.
The California Employer Health Benefits Survey, conducted by the California HealthCare Foundation and the National Opinion Research Center, said the 8.3 percent increase was more than double the state's inflation rate of 3.4 percent.
The annual survey looks at coverage, availability, cost, benefits and enrollment of health care in the state and nation. Both health maintenance organization and preferred provider organization premiums increased in California in 2007, 10 percent and 8 percent, respectively. HMO premiums remained about 20 percent to 25 percent cheaper than PPO premiums.
Looking ahead, 41 percent of employers of more than 200 people said they were very or somewhat likely to increase the amount employees pay toward insurance in 2008.