State employers expect higher health costs

Missouri employers expect a substantial increase in health care costs for their employees in 2001, according to the Missouri Merchants and Manufacturers Association.

Sheelah R. Yawitz, association president, announced that 80 percent of the merchants and manufacturers who responded to the organization's recent survey expect health care premiums to increase up to 20 percent in cost.

In addition, 54 percent of the respondents indicated that employees would cover all or a portion of the increases.

According to Yawitz, the employers indicated that they are considering several measures to offset the anticipated increases:

Employees picking up all increased costs

Employee and employer sharing the increased costs

Switching to a less costly plan

Increasing deductible and co-pays for office visits and prescription coverage

Employees paying for all dependent coverage.

Yawitz said that one of MMMA's legislative priorities for 2001 will be controlling health care costs.