Group medical coverage continues to experience “steady increases,” forcing employers to shift more of the burden to their employees.

Employers of all sizes are being affected by the increases, which in turn is leading their employees to see higher deductibles and copays, according to The Council of Insurance Agents & Brokers semiannual Employee Benefits Market Survey.

Employers are not planning to cut coverage, according to the survey.

Ken A. Crerar

“As the prolonged economic downturn continues to hit employers’ bottom lines and rates continue to rise in excess of inflation, many corporate clients are being forced to pass on more of the costs of group medical coverage to their employees,” said Ken A. Crerar, president of the council, in a statement.  “However, the survey also shows that most employers aren’t looking to do away with this important employee benefit despite these issues.”

Experts have feared that as employers struggle to make ends meet an easy cut would be health benefits.

But Crerar said employers’ reluctance to eliminate these plans in tough times “shows the value that they place on such plans in attracting and retaining employees.”

The report was released as Congress and President Barack Obama continue to weigh a variety of health care reform options.

“Congress is beginning to seriously consider the elements of health care reform, and must recognize that employer-sponsored health care does work for millions of people across the U.S.,” Crerar said. “Wiping clean the slate of health care options for employer-sponsored health-care would cause more problems than it would solve.”

Employers are also looking to employees to shoulder a higher percentage of premiums costs, with more than 50% of council survey respondents saying that over half of their clients have chosen this option.

High Deductible Health Plans and Health Savings Accounts remain of great interest to employers, but not as the sole health care offering. Fifty-seven percent of consultants said clients see HDHPs/HSAs as a plan option rather than for replacement of an existing plan. Small, medium and large accounts continue to implement the HSA option at around the same pace, and employer contributions to HSAs generally fall within the $250-$749 range, the survey found.

The benefits consultants also said that group life insurance renewal rates remained stable or dipped slightly for all size accounts.