Employer health costs per worker see sharp increase

The cost of employer-paid health insurance averaged of $2.59 per hour per worker in 2005, an increase of more than 61%, or about $1 per hour, since 1999, according to a Kaiser Family Foundation study.

Health care costs also comprise a growing share of overall payroll costs, from 8.2% in 1999 to 11% in 2005, according to the report, Employer Health Insurance Costs and Worker Compensation.

Kaiser researchers also found wide variations in health care costs by occupation and business size. Although technical, executive and professional occupations had some of the highest health costs per hour, as a share of payroll their costs were relatively low. This most likely reflects the relatively higher wages in these jobs. Looking at the change from 1999 to 2005 period, health costs increased relative to payroll for all occupations.

The report is available at: http://www.kff.org/insurance/snapshot/chcm030808oth.cfm.

More news