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.
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.