Companies’ health costs grow at new low rate, study finds

Companies’ healthcare costs increased this year by the lowest rate since at least 1996, according to a new study. 

{mosads}The report from the consulting firm Aon finds that average healthcare costs for medium and large companies increased 3.2 percent this year, the lowest increase since the firm started tracking the costs in 1996. 

However, the study finds that even as overall costs grow more slowly, employees’ share of those costs continues to increase, in part because of the looming ObamaCare “Cadillac Tax” on high-cost health plans. 

The tax is aimed at constraining healthcare costs, and one way for companies to avoid being hit with the 40 percent levy is to shift more costs onto employees. 

The tax, which begins in 2018, affects health plans with costs above $10,200 for individuals or $27,500 for families.

The report finds that the percent of healthcare costs covered by employers has declined by about 1 percent per year since 2012. 

One third of companies increased the share of costs employees had to pay this year, an earlier Aon study found, and about 80 percent are considering taking that step in the future. 

Both unions and businesses have strongly objected to the tax, and talk is growing on both sides of the aisle in Congress about repealing it. 

While overall cost growth has been lower, the study projects that it will soon increase. 

“As prescription drug costs continue to grow at a double digit pace and the economy picks up speed, it’s likely these premium rates will start to climb,” said Mike Morrow, senior vice president of Aon Health. 

It’s not just employers’ healthcare costs that are set to start increasing more. The Department of Health and Human Services found in July that overall healthcare costs increased 5.5 percent from last year, an increase from several recent years of record low growth below 4 percent. 

HHS pointed to the millions of newly insured people under ObamaCare and higher drug prices as reasons for the increase. 

This story was updated at 3:35 p.m.