According to a study conducted by the consulting firm Mercer, employers struggling to deal with escalating health costs will increasingly shift benefits’ expenses to employees.

This is a continuing trend. In fact between 2003 and 2007 the
median family deductible in preferred provider plans increased from $1000 to $1500. Mercer found that of those organizations that were going to pursue cost reductions, 60% indicated they would raise deductibles, coinsurance, copayments, and/or out-of-pocket maximums.

Another 19% reported that they will add a high deductible plan and employee spending account such as a health savings account (HSA). It’s estimated that heath plan costs will increase by 8% in 2009. Small employers’ costs could go up 10%. In response more small employers are discontinuing their plans or not instituting them in the first place.