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Survey: Mass. Health Plan Costs Up 7.1%

Massachusetts employers saw the cost of their health benefits increase by 7.1 percent and many will respond by increasing their employees’ share of the burden, according to the Mercer 2008 National Survey of Employer-Sponsored Health Plans.

The survey found that Massachusetts employers paid an average of $10,242 per employee, a 7.1 percent increase compared to 2007, for health insurance coverage this year. Respondents said that if they had made no changes to their plans in response to rising costs, their increases would’ve been nearly 9 percent.

Employers also told Mercer that making changes to the structure of their plan or changing plans or vendors could cut the average increase to 6.3 percent.

Mercer said 40 percent of survey respondents intend to increase employeesˆ’ share of premium contributions in 2009.

The survey found that 50 percent of all Massachusetts employees covered in employer health plans were enrolled in HMOs. The average monthly employee health insurance plan contribution was $95 in 2008.

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