Orange County businesses will pay more to provide healthcare for their workers in 2007, but the rate of growth in premiums could be the smallest in years.
Local employers are projected to pay 7.7% more in healthcare premiums in 2007, down from this year’s 8.4% rise and increases of 10% to 19% from the prior four years, according to Chicago-based human resources services company Hewitt Associates Inc.
Next year’s projected increase could be the smallest since 2001, when rates rose 5.4%.
Some employers expect to present their workers with even less of a hike.
Advanced Medical Optics Inc., the Santa Ana-based maker of contact lens solutions and eye surgery devices, expects a 5% healthcare cost rise for 2007, said Francine Meza, senior vice president of human resources.
“Our outlook for 2007 is good,” Meza said.
Advanced Medical funds most of its own plans, paying for healthcare claims incurred by workers and dependents. It also has insurance to cover claims that exceed a certain amount.
With self-funded plans, Advanced Medical and others don’t pay monthly premiums for health plans for their workers. Instead, they pay only for the healthcare their workers actually receive.
“Changes in our rates are in direct proportion to actual claim costs,” Meza said.
Advanced Medical plans to offer more preventative healthcare under its preferred-provider organization plan, including wellness and disease management programs, Meza said.
The company is seeing what Meza called a significant rate increase in its Kaiser Permanente health maintenance organization plan.
The increase is being passed on to workers.
