Chamber Welcomes Survey Results on Health Benefits

WASHINGTON, D.C.—The United States Chamber of Commerce cheered the second straight annual decline in the growth rate of health insurance premiums—now at 9.2 percent—but expressed concern that the percentage of U.S. businesses offering health benefits to their employees has fallen over the last five years. These findings are based on results from the Kaiser Family Foundation and Health Research and Educational Trust 2005 Employer Benefits Survey.

"There are still numerous challenges for businesses, especially smaller ones, that provide health insurance to their employees," said Kate Sullivan Hare, the Chamber's executive director of health care policy. "Businesses are happy to see the end of double-digit rate increases after four straight years."

The average family health plan costs businesses more than $11,000 per year per covered worker, and more than 90 percent of workers with family coverage make a contribution toward premiums, according to the Kaiser Foundation survey. While the overall cost of premiums has climbed steadily, employers continue to shoulder most of the burden, paying 84 percent of premiums for single coverage and 74 percent for family plans.

Employers have embraced various benefit options to increase consumer responsibility and cost-sharing strategies to help reduce the growth in health care costs. One out of five firms offers a high-deductible health plan. Most firms also employ disease management programs for asthma, hypertension, and high cholesterol, as well as case management services for large claims.

The survey found that employers are less likely to increase workers' costs for using their coverage, such as raising deductibles and cost-sharing for doctor visits and prescription drugs. "Unless more is done to control the annual climb in overall costs, lower-income workers won't be able to afford their share of premiums," Sullivan Hare added. "Congress needs to jump-start a national infrastructure for health information technology so providers have real-time access to appropriate treatment. Federal health programs must lead the way in rewarding good medical performance and proper procedures."

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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