Mercer says companies of all sizes are likely to continue passing along the increased costs to employees. About 19% of employers say they will add a high-deductible health plan, such as a health savings account or a health reimbursement arrangement. Those plans often cost about 20% less than typical medical plans like HMOs or PPOs, said Mercer.
Mercer found that despite the cost-savings tactics, a growing number of the smallest employers are expected to drop health-insurance coverage altogether. The number of small employers with 10 to 199 employees offering health insurance has fallen from 69% in 2001 to 61% in 2007.