Survey: Employer healthcare costs on track for lowest hike since 1997

Employers' healthcare costs in 2012 are on track to see their lowest increase since 1997, according to preliminary results from a Mercer survey. 

The findings are good news for workers, whose premiums are expected to rise more slowly than in years past. Still, the projected 5.4 percent increase remains "well above" both inflation and salary growth.

The slowdown is linked to two factors, according to Mercer: cost-shifting to employees through higher deductibles and lower-value plans, for example; and less use of medical care in the economic downturn. Even without cuts to their plans, employers said, costs would be on target to increase by 7.1 percent next year, far slower than the 9 percent average in years past.

"Understanding the slower cost growth for 2012 means looking at the factors working to hold down the underlying trend along with the actions employers are taking to reduce cost next year," Mercer said in a release. "Use of health services, which slowed this year, is one such factor. Some analysts believe the tough economy, combined with generally higher deductibles and other forms of cost-sharing, is affecting utilization — that because employees have less disposable income and are working longer hours, they are less likely to seek non-urgent care."

Some say workers are benefiting from employers' focus on programs targeted at improving employee health.

"Earlier risk identification and health education, along with improvements in drug therapies and medical technology, are keeping people with health risks and chronic conditions away from the emergency room," Susan Connolly, a partner in Mercer's Boston office, said in a statement. "And consumers are more aware that overuse and misuse of health care services will directly impact their wallets as well as their employer's budget."

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