Wednesday, June 14, 2006
NEW YORK - Preliminary rates that U.S. employers would pay health insurers in 2007 for coverage are increasing in double-digits again, although such rates are increasing at a slower speed, a study said on Tuesday.
Beginning data for next year collected by Hewitt Associates, a human resources services company, showed initial rate increases averaging 11.8 percent.
That compares to increases of 12.3 percent in 2006, 13.8 percent in 2005 and 16.7 percent in 2004.
"It's very, very good news that it's coming down, but nobody's going to be real thrilled with a double-digit increase," said Paul Harris, senior health-care strategist for Hewitt.
The preliminary results are from offers made from insurers to their manager clients that take effect start next year, Harris said.
Such preliminary rates come before discussions, and final increases can be lower, he said.
"If the pattern follows prior years, we would expect to end up at about 7 or 8 percent," Harris said. That compares to a final 2006 increase of 10 percent.
Hewitt said the preliminary rate information comes from data composed from 160 large companies on behalf of more than 1 million employees.
Certain regions of the country demonstrated higher initial rate increases. For example, the preliminary analysis showed a 13.8 percent rise for the Western United States compared to 10.8 percent at this time last year, and an 11 percent increase in the Southeast compared to 9.4 percent.
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