Employers Expect 8% Rise in Insurance Costs

U.S. health insurance costs will rise 8% in 2005, lower than this year’s increase, as employers boost fees for workers and monitor medical care for patients with chronic conditions such as diabetes, according to a study released Wednesday.

Use of disease-management programs and tougher negotiations with health insurers cut 2 percentage points from premiums for some businesses, according to the survey by consulting firm Towers Perrin. Benefit cuts trimmed costs further.