Consultants at Hewitt Associates Inc. are expecting health rates to increase about 8.7% in 2008, while their colleagues at Towers Perrin Inc. are predicting costs will rise about 7%.
Hewitt, Lincolnshire, Ill., says the average cost of coverage will increase to $8,676 per employee, from $7,982, with employees’ share of the costs increasing to $1,859, from $1,690.
The projected 2008 increase is up from an average increase of 5.3% this year.
Hewitt is basing its projections on an analysis of data for 1,800 health plans, including plans at 400 large employers.
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Towers Perrin, Stamford, Conn., which is basing its projections on a survey of 315 national employers, says costs will increase to $9,312 per employee, from $8,735, with employees’ share of the costs increasing to $2,040, from $1,884.