Illinois Firm Forecasts 9 Percent Hike In Medical Insurance Premiums, Out-of-Pocket Health Costs

Lincolnshire, IL (AHN) - While Medicare has assured there will be no rise in premiums in 2009 for majority of its elderly and disabled members, a study by Hewitt Associates projects a 9 percent rise in premium and out-of-pocket expenses for individual workers.

For companies, the cost of a health insurance policy will rise to 6.4 percent, which will hike the yearly bill to $8,863. For individuals, the premium is forecast to go up to $3,826 per annum. Meanwhile, Medicare contributions for seniors and disabled will be fixed at $96.40 for 2009.

Hewitt based its estimates on data from over 300 major employers and more than 13 million health plan holders. The financial burden on added health care cost is expected to be felt most by employees with family coverage as they will be charged more compared to workers holding single coverage policies. Business with lesser staff will also be paying higher medical cost and premiums.

To pare down the cost, a growing number of U.S. companies are granting cash and other incentives for their workers to spend on preventive service. Measures made by the firms include free flu vaccinations, blood tests and encouraging employees to use the fitness center by refurbishing it.

The financial relief for seniors and disabled of temporary halt in premium increase may not last long as Richard Foster, chief actuary at the Centers for Medicare and Medicaid Services, has indicated, quoted by USA Today, "In the future, we're going to have to go back to raising the premiums to match the increase in expenditures."