Employer costs for health insurance go up

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


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

Deal Saver Subscribe today!


The Kansas City Star is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Kansas City Star uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here