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Employment
Policy Foundation
1015 Fifteenth Street, NW
Suite 1200
Washington, DC 20005
(202) 789-8685
Fax: (202) 789-8684
E-mail: info@epf.org
HR Benchmarks
 Employer Share of Health Benefit
Costs Could Top $10,000
per Employee by Decades End
Introduction
Since 2000, the cost of
health insurance the largest cost
factor in most employee benefit packages has
been escalating rapidly.
This HR Benchmarks provides a
wide range of national healthcare cost
comparisons by industry and union
status. If the employer cost of health
benefits continues to grow at the rate shown
by the Employment Cost Index (ECI) for
Health Insurance from 1995 to 2002, employer
health benefits will constitute 16.5 percent
of total compensation by 2010.
Understanding the cost of a
company's health benefits relative to
industry averages is critical for human
resources managers attempting to control
rising health insurance costs while
remaining competitive in an industry.
The Employment Policy Foundations (EPF)
analysis shows that, in March 2002, the
average total cost of health insurance
for full-time year-round employees was
$5,458 for family plans and $3,189 for individual
plans annually. On average, employers
paid approximately 77 percent of the
cost of family plan and 67 percent of individual
plan costs. For a Fortune 500 company
with 40,000 employees, the average
employer cost of $3,262 translates into
approximately $130 million annually.
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