Premiums for employer-sponsored health insurance rose to $12,680 annually for family coverage in 2008 — with employees on average paying $3,354 out of their paychecks to cover their share of the cost — according to a study by the Kaiser Family Foundation and the Health Research & Educational Trust.

The survey found many more workers are also enrolled in high-deductible plans.

Premiums rose just 5 percent this year, but they have more than doubled since 1999 when total family premiums stood at $5,791 and workers paid $1,543, according to the study. During that same nine-year period, workers’ wages increased 34 percent and general inflation rose 29 percent.

Many workers are also facing higher plan deductibles, including a growing number with general plan deductibles of at least $1,000 – 18 percent of all covered workers in 2008, up from 12 percent last year. This is partly driven by growth in consumer-directed plans like a tax-preferred Health Savings Account.

The shift has been most dramatic for workers in small businesses with three to 199 workers, where 35 percent of covered workers, up from 21 percent last year, must pay at least $1,000 out of pocket before their plan typically will start to pay a share of their health-care bills. For workers facing deductibles in preferred provider organizations, the most common type of plan, the average deductible rose to $560 in 2008, up nearly $100 from 2007.

Preferred provider organizations dominate the employer market with 58 percent of covered workers, while health maintenance organizations cover 20 percent.

The share in consumer-directed plans – high-deductible plans with a tax-preferred savings option such as a health savings account – increased to 8 percent in 2008 from 5 percent in 2007. Among firms offering such consumer-directed plans, six in 10 say that the primary reason is cost.

The annual Kaiser/HRET survey, conducted between January and May of 2008, included 2,832 randomly selected, non-federal public and private firms with three or more employees.

The Kaiser Family Foundation is a non-profit private operating foundation, based in Menlo Park, Calif., that provides information, research and analysis on health issues.

The Chicago-based Health Research & Educational Trust, an affiliate of the American Hospital Association, is a private, not-for-profit organization involved in research, education, and demonstration programs addressing health management and policy issues.

------------------------------------------------------------------------------------

© 2008 American City Business Journals, Inc. and its licensors. All rights reserved.