Small to medium businesses look set to be hit hard in the pocket when it comes to renewing their group health insurance policies.
The cost of providing such benefits is set to rise significantly around April when most policies are up for renewal.
It is claimed that more than half the companies that offer employee health insurance have ended up claiming more for employee treatments than what they had paid for in their premium.
Another reason insurance companies report that premium prices will have to go up are that there have been significant advancement in medical technology which has meant that medical inflation is growing at a faster rate than general inflation.
All this means that the rise in cost of businesses offering these benefits are set to rise up to double or triple the amount that it did last year.
These benefits can keep workers happier and healthier meaning fewer sick days and a more productive work force. Many businesses will need to look at whether these benefits can cover the extra costs that come with offering employee medical cover.
