The cost of health insurance is expected to hit its highest level in 2011, the highest in five years as reported by Hewitt Associates. Hewitt is an international consultant in human resources.

For employers, an average increase in premium is expected to be about 8.8 percent for the next year, as compared to 2010’s 6.9 and last year’s 6 percent. The total premium for health care per employee has been projected to be around $9,821 for big companies in 2011, while the current one stands at $9, 028. The employees might be asked to make their contribution towards the cost, about 22.5 percent of the entire premium or $2,209, which is an increase of 12.4 percent from 2009.

Average costs that employees cater for from their pockets, such as deductibles, co-insurance and copayments could be around $2,177 in the coming year, which is about 12.5% rise from the current one. The projections have shown that in ten years the total premiums of health care would more than double, where in 2001 it was $4,083 to the projected 2011’s $9,821. Medical costs for employees that also include employee contributions and money from their pockets will more than hit a triple amount to $4,386 in 2011 from 2001’s $1,229.

Hewitt said that employers are now seeing increases in charges as well as rise in catastrophic claims frequently, particularly true in the current time, since a slow employing trend has left many employers with a work force that is much older and prone to medical conditions that are costly.

Employers are also trying to find ways of cutting costs through the review of dependants eligible for cover through their plans, according to Hewitt Associates.

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