A survey from consultant Mercer of companies that offer employees health insurance shows the cost will rise an average of 5.4 percent in 2012. That compares with an average hike of 6.4 percent this year and it would be the smallest increase since 1997, according to data Mercer released Wednesday.

Employers say their health insurance costs would rise about 7 percent next year if they made no changes to the plans they offer; health care costs overall are continuing to rise much faster than inflation. But employers told Mercer they expect to whittle the increase workers see by taking such measures as raising deductibles or co-payments and switching insurers.

Some workers may see smaller or larger hikes than this average. Companies can eat a portion or all of a cost increase for their workers, but they also may ask workers to increase their share of the total bill they split with the employer for coverage. About a third of the employers Mercer surveyed plan to increase the portion their workers pay next year.

Employer-sponsored health insurance is the main form of health coverage in the United States, and many workers are about to receive notices from their companies about their benefits plans for next year.

Insurers have been saying for months that health care use has grown more slowly this year, and many industry observers pin this on the sluggish economy.

Employers also have played a role in containing health care costs, according to Beth Umland, Mercer's health and benefits research director. For several years, companies have been increasing employee cost-sharing in their plans, which means they ask people to pay more at the doctor's office or a higher percentage of the bill for care. This exposes people more to the cost of care.

"That, combined with the bad economy, is kind of making employees think twice about non-urgent care," she said.

Insurers and employers base their rates for health insurance in part on the price of care and how often people use it, Umland said. If the use of care is rising at a slower rate, they may be able to tone down insurance cost increases.

Slower insurance growth rates deliver only a limited dose of good news. Health care costs are still climbing about three times faster than general inflation, noted Bob Laszewski, a consultant and former insurance executive who was not involved with the study.

"We still have health care costs far outstripping wages and growth in the economy," he said."

http://www.benefitspro.com/2011/09/21/health-care-use-slows-premium-hikes

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CONTACT:  Joseph A. Pilla, President, ETA Benefits Group

570-668-6800 / joe@etabenefits.com

ETA Benefits Group Now Offering Blue Cross of Northeastern Pennsylvania Small Group Coverage Plans

ETA Benefits Group Named a Select Producer For Blue Cross of Northeastern Pennsylvania for the 2-50 Market

TAMAQUA, Pa.—ETA Benefits Group, Tamaqua, is proud to announce that they have been named a General Agent and Select Producer for Blue Cross of Northeastern Pennsylvania (BCNEPA).   Their business relationship with BCNEPA has expanded from the individual market to include the 2-50 small group market.

Select producers can begin selling "New to Blue" Small Group (2-50 lives) effective January 1, 2011.  As a General Agent, ETA will serve as the single point of contact for Blue Cross and the independent agents that sell its products.  ETA will be responsible for coordinating quotes, proposals, and sales for BCNEPA and their independent agents’ clients, assistance with training and selling the products, and sales support as needed.

Joseph A. Pilla, President of ETA Benefits Group, said, "We are honored to be chosen as one of the selected producers to work with BCNEPA as they enter the small group broker marketplace."

Kent Davidson, Vice-President of Sales, BCNEPA, said, "BCNEPA is pleased to be expanding our business and our relationship with local agencies within our 13-county service area."

ETA Benefits Group is an independent insurance agency representing over 30 insurance companies including Capital Blue Cross, Highmark Blue Shield, HealthAmerica, Delta Dental, Travelers, Donegal, MetLife, Hartford, and many other top rated health, life, property and casualty insurance carriers.  For more information on ETA Benefits Group, contact Joseph A. Pilla, President, at 570-668-6800 or by email at joe@etabenefits.com.

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