In 2006, the cost of employee health care coverage in the United States rose 7.7 percent. Although the lowest increase since 1999, the rise is more than double the overall inflation rate and well ahead of the increase in average worker income. Since 2000, the cost of family coverage has risen 87 percent (excluding the cost of deductibles and other out-of-pocket payments which have also been rising), while consumer prices are up 18 percent. This national cost trend would probably have been higher, analysts said, but regulators in a number of states were able to push prosperous nonprofit Blue Cross plans to hold down their increases. Despite the increasing costs, about six out of 10 employers still offer health coverage to attract and retain workers. However, these cost pressures are making it more difficult for employers to raise wages and salaries. |