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Report: Some California employers adopting 50-50 split of health insurance costs

December 12th, 2010

In another sign of the breakdown of traditional, all inclusive employer paid health insurance, the (Santa Rosa) Press Democrat reports today that the now common 75-25 percent employer/employee premium cost share is morphing into a straight split.  “Often we see companies cutting their contributions down to as low as 50-50,” David Hodges, a Santa Rosa insurance broker, told the newspaper.

Marian Mulkey, director of health reform and public programs at the California HealthCare Foundation, is quoted, pointing to a rapid rise in health care costs and utilization that have ratcheted up premiums 117  percent in California over the past eight years.  “We use more services and we pay more for what we use,” Mulkey noted.

 


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