Average cost for health coverage per employee to cross $10,000 threshold

Oct 06, 2011

Healthcare coverage has gone up for employees in recent years.

A new study shows that while healthcare costs will increase at a lower rate in 2012 compared to 2011, the average cost per employee will surpass the $10,000 mark for the first time next year, according to Aon Hewitt. Meanwhile, life insurance rates have continued to drop, making it affordable during tough times.

The Aon Hewitt analysis found that the 2012 average healthcare premium will increase 7 percent, which is slightly lower than the rate of 7.5 percent in 2011 and on par with the 6.9 percent rate in 2010. Even so, the total cost is projected to be at around $10,475 per employee, up from $9,792 in 2011 and $9,111 in 2010.

The amount employees will be asked to contribute is up as well, the report says, as $2,306, or 22 percent of the total premium, will be asked for by employers in 2012. This is up from $2,084 in 2011, or 21.3 percent of the premium.

While healthcare costs continue to rise, Byron Udell, CEO of Accuquote, tells USA Today that life insurance seems to get less expensive every year. The lowest 20-year term life insurance available to a 40-year-old man in 1994 was $995, today the same rate would be $355, the news source said.

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