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
TheStreet Open House

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

Stocks in this article: PRU

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) 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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs