NCPA - National Center for Policy Analysis

Increases in Health Care Costs for Employers Decreasing

January 30, 1996

Employers' health care costs rose just 2.1 percent last year, according to the consulting firm of Foster Higgins. This follows a 1.1 percent decrease in 1994.

Some of the factors involved:

  • Employees enrolled in Health Maintenance Organizations rose from 23 percent to 27 percent over the year.
  • Health care has become more efficient with the medical component of the consumer price index rising only 4.1 percent in 1995 -- the smallest increase since the index was created in 1984.

These figures compare with double-digit increases in health care costs for five years during the late 1980s and early 1990s.

Source: Ellen Neuborne, "Health Care Costs Slowing for Employers," USA Today, January 30, 1996.

 

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