Workplace

Employer costs for health insurance go up

Updated: 2013-06-14T02:16:00Z

By DIANE STAFFORD

The Kansas City Star

As employers prepare for new employee coverage requirements in 2014, they are already dealing with higher costs of subsidizing employee health insurance.

The U.S. Bureau of Labor Statistics said the average per-employee cost for private-sector employers that provided health benefits — currently a discretionary employee benefit — was $2.26 an hour in March. That compares with an average of $1.92 in mid-2008.

At the end of the first quarter this year, the average total cost of employee compensation for employers was $31.09 per employee hour worked. That compares with $28.46 five years ago.

In March, the average cost to employers for wages and salaries was $21.50 an hour, while the average cost of employee benefits was $9.59 an hour. Benefit costs accounted for 30.9 percent of total compensation costs, a percentage that has stayed fairly constant in recent years.

The overall average is skewed higher because of higher public-sector pay and benefits. The total costs for private-sector workers averaged $29.13 an hour, while state and local government employers paid an average of $42.12 per employee hour worked.

In the private sector, legally required benefits such as Social Security, Medicare, unemployment insurance and workers’ compensation insurance accounted for 8.2 percent of compensation costs for employers.

To reach Diane Stafford, call 816-234-4359 or send email to stafford@kcstar.com.

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