Released: November 20, 2008

Health insurance deductibles march higher

Source: Lisa Girion, L.A.Times (Free Registration)

Employers are dramatically shifting healthcare costs onto workers, so much so that the average annual deductible for an individual surpassed $1,000 for the first time this year, according to a new study.

Millions of workers—whether employed by small, medium or large companies—must now pay an average of $1,001 out of their own pockets before their health insurance coverage begins paying a share of the expenses. That’s up 17% from $859 last year.

“Raising the deductible has become the fallback for employers faced with cost increases they can’t handle,” said Laura Baker, a consultant for Mercer, the benefits consulting firm that conducted the annual survey of about 2,900 companies. “It’s the easiest way to reduce cost without taking more out of every employee’s paycheck.”

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