LINCOLNSHIRE, Ill., Oct 11, 2004 (United Press International via COMTEX) -- Global human resources services firm Hewitt Associates said Monday U.S. health care costs increased sharply again this year.

In 2004, health care costs increased 12.3 percent. For 2005, Hewitt is projecting an 11.3 percent average health care cost increase.

Many companies are raising co-payments, deductibles and out-of-pocket limits, and increasing employees' share of health care premiums to cope with the double-digit increases, Hewitt said.

Hewitt projects the average employee contribution for 2005 will be $1,481, representing 19 percent of the overall health care premium, up from $1,288 in 2004.

On average, Hewitt forecast companies will experience 2005 cost increases of 11.5 percent for health maintenance organization plans (HMOs), 10.5 percent for traditional indemnity plans, 11 percent for preferred provider organizations (PPOs) and 11.5 percent for point-of-service (POS) plans, with projected employee contribution increases of 15 percent across all plan types.

That means from 2004 to 2005, the average cost per person for major companies will increase from $6,519 to $7,269 for HMOs; $6,823 to $7,573 for PPOs; $7,192 to $8,019 for POS plans; and $6,793 to $7,506 for indemnity plans.

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