Health costs up 11% for firms

The health insurance premiums that employers pay for workers increased an average of 11 percent this year statewide, according to a survey released today.

This marks the third consecutive year for an 11 percent hike, half of Colorado’s record increase of 22 percent in 2002, according to the annual survey by the Mountain States Employers Council.

Still, this year’s increase remains high, said Patty Goodwin, director of surveys for the Denver-based nonprofit that helps employers with human resource and management issues.

“It’s like comparing it to the price of gas — if it’s kept at $3 a gallon long enough and goes down to $2.75, we think we’re getting a bargain,” she said. “Employers and employees are getting used to the increases in health insurance.”

The council received responses for its 2007 health plans survey from 634 large, medium and small employers statewide; 73 were from Colorado Springs.

On average, this year’s premium is $1,096 a month per employee for family coverage, a 43 percent increase since 2003.

Premiums for an employee and spouse average $759, and coverage for a single employee averages $374, according to the survey.

Colorado employers are continuing to pick up the bulk of the tab. Employers pay 67 percent of premiums for families, 69 percent for an employee and a spouse, and 85 percent for single employees, the survey shows.

The employee share averages $367 a month for family coverage, $237 for an employee and spouse, and $74 for single coverage.

Average premium costs vary by plan.

Point of service plans, which allow the greatest flexibility in choosing doctors and hospitals, are the most expensive, and health savings accounts, which accompany a high-deductible health plan that requires employees to meet thousands of dollars of out-of-pocket expenses before insurance payments begin, are the least expensive.

Companies offering health savings accounts have more than doubled in Colorado in the past year to 15 percent, compared with 7 percent in 2006, Goodwin said.

About 37 percent of survey respondents said they are considering offering high-deductible health plans.

“The monthly premium is lower because you’re paying a high deductible, and many employers take the difference on what they’re saving in premiums and put some of the money into the employees’ health savings accounts,” Goodwin said.

Colorado employers add an average of $128 per month to an employee’s health savings account, according to the survey.

CONTACT THE WRITER: 636-0235 or debbie.kelley@gazette.com