To stave off double-digit increases in the cost of
employee health plans, small and midsize companies cut benefits in
2003, according to a survey and analysis by Mercer Human Resource
Consulting and Marsh Inc. (
www.marsh.com ). This held costs to an average of $6,130 per
worker, up 9.8% since 2002. Companies with fewer than 50 employees
limited their per capita costs to $5,795 by instituting provisions
discouraging dependent coverage and imposing high deductibles. But
businesses with 1,000 to 1,999 employees spent considerably
more—$6,472—per worker, reflecting the challenge of competing for
labor with larger employers that have greater purchasing power. The
findings are based on responses from 1,904 employers.
Employee Benefits
