Health Costs Rise 13% At Big Employers

NU Online News Service, March 17, 2004, 4:22 p.m. EST – Big employers continue to see double-digit increases in health benefits costs.[@@]

Large employers are paying an average of about $7,657 per employee, up 13% from what they paid in 2003, according to a survey by the benefits arm of Fidelity Investments, Boston.

Fidelity researchers are basing the results on reports from employers that use Fidelity’s benefits administration services. Fidelity’s typical benefits administration client has about 9,500 active employees.

The surveyed employers raised employee contributions and reduced plan design value for more than half of their health plan enrollees.