Sticker shock: Employers see steep rise in premiums
Employers face an 11% to 12% average premium increase for health care insurance in 2001, according to an analysis of rate projections in 22 states by Corporate Research Group (CRG) in New Rochelle, NY. That increase may come as a shock to employers, who saw average premium increases of 8% to 10% in 2000 and 7% to 9% in 1999.
Texas, Ohio, and Michigan are the hardest hit states with the Houston Business Group on Health, which represents 40 employers, facing a reported premium hike of 20% in 2001.
CRG predicts these premium increases will push employers and employees out of HMOs and into self-insured plans.