Chamber: Survey Shows Employer Commitment, Challenges Providing Health Benefits

WASHINGTON, D.C. – The United States Chamber of Commerce noted that despite a third successive year of double-digit rate increases for health benefits, employers remain committed to providing affordable health benefits for workers.

Chamber health care policy director Kate Sullivan spoke at the release of survey results from the Kaiser Family Foundation and Health Research and Educational Trust 2003 Employer Benefits Survey.

"Despite major rate increases, businesses continue to absorb the bulk of rising costs for their employees," Sullivan said. "Employers are paying 84 percent of premium costs for single employees, the same as last year, and they are picking up a greater portion, 73 percent, of premiums for family coverage than in 2002."

The average cost for a family health plan now tops $9,000 per year, up 42 percent in just three years, according to the Kaiser Foundation survey.

The survey also showed that small businesses are disproportionately impacted by rate increases. While rates increased 13.2 percent for larger firms, companies employing fewer than 200 people faced rate increases of 15.5 percent. Moreover, large companies that self-insure their health benefits under federal law experienced markedly lower cost increases than employers that bought traditional commercial insurance plans.

"The survey shows that while employers of all sizes continue to shop around for coverage options as costs rise, small employers do not have alternatives in the marketplace to which they can change," Sullivan said. "The Senate should pass the Small Business Health Fairness Act to provide more options for small businesses and level the playing field, in terms of health benefits, between large businesses, unions and small employers."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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