This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Big Fears on Health Care Point to Same Old Rises in Payments

NEW YORK ( TheStreet) -- Health care consumers sensing a seismic shift in the way they'll buy and manage medical coverage may be correct in one way -- 29% of U.S. employers either plan to ax their employee health care programs or are considering it, which would send workers out to the government-sponsored health care exchanges expected to roll out in 2014 -- but wrong in expecting massive hikes in health care costs.

This year's increase is projected to be only 0.1% higher than was seen in 2010, for instance, according to data from Aon Hewitt.

Prudential Insurance (PRU - Get Report) has been taking a long look at health care reform and reports on the findings in Health Care Reform: The Waiting is Over, the company's third-in-a-series review of health care reform.

In it, Prudential asks health insurance brokers, employees and employers how consumer health care benefits will change this year and next, finding 46% of employees believe the cost of their health care coverage will rise this year; and that 80% of health care insurance brokers interviewed by the insurance giant say the number of employee benefits offered will be "highly impacted" by health care reform.

In addition, 55% of U.S. employers say the number of health care benefits they can offer will be a "top concern" in 2013.

Of course, these are safe bets; the costs of health care coverage have been rising annually for decades, and employers asking their workers to take more of the burden seems to be an entrenched workplace tradition.

According to Aon Hewitt, health care insurance premiums will rise by 6.3% this year -- a little more than the 5.5% average seen from 2007-10 and less than the 8.5% rise of 2011. The 4.9% rise last year was the lowest increase in six years.

According to Aon Hewitt, the average employee health care tab will rise to $11,188 this year, up from $10,522 last year. But workers are expected to pay only $2,385 of the freight, or $181 more than last year.

Rather than continuing to pay the extra $8,973 to fund employee health care insurance, more and more companies with 50 or more employees will opt to pay a per-employee government tax of $2,000 to cut the cord and send staffers out to health care exchanges.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PRU $85.07 0.00%
AAPL $131.44 -0.26%
FB $80.05 -0.12%
GOOG $539.78 0.00%
TSLA $251.45 0.00%

Markets

DOW 18,126.12 -36.87 -0.20%
S&P 500 2,120.79 -2.69 -0.13%
NASDAQ 5,097.9760 -8.6170 -0.17%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs