“We believe the burden has fallen more on smaller enterprises as large corporations have more successfully striven to reduce their healthcare premium costs,” JoAnn M. Laing, ISI’s President said. “Smaller firms have less clout with insurance companies and therefore are forced to accept higher premiums.”
“Many of them have opted to reduce benefits, increase employee contributions or even stop offering healthcare insurance,” she said.
“Our studies and surveys of smaller firms indicate that they have embraced HSAs to a greater extent as a means of reducing healthcare premiums,” Laing added.
“Many others are giving employees a stipend and having them find their own insurance,” she said.
Laing said her firm’s research also indicated that there were significant regional differences with northeast based companies being hardest hit.
Healthcare premiums are also far outpacing the rate of inflation by almost two-to-one.