Colorado employers' health care costs will once again soar faster than the national average next year, forcing both companies and workers to dig deeper into their pockets to pay for insurance.

It's the eighth straight year of double-digit increases in the state, according to a survey of Colorado employers conducted annually by Lockton Benefit Group in Denver. Costs are expected to rise 13.7 percent next year compared with 12.9 percent in 2008.

The survey compares itself with national studies showing costs rising in the range of 6 percent to 7 percent next year. In this shaky economy, Colorado's higher rates are putting more pressure on already cash-strapped consumers and may result in more working uninsured, said Bill Lindsay, president of Lockton Benefit Group.

"It becomes a particular problem in coverage for dependents," he said. "You're now dealing with premiums in the magnitude of $500, $600 to cover your family. That's the equivalent of a car payment, and it could cause a lot of people to rethink covering their families."

About two-thirds of employers are asking workers to pay a higher monthly premium for themselves as well as to insure family members, according to the survey. The majority of survey respondents expect employees to contribute more than 30 percent of the family premium rate, while less than 20 percent of employers expect the same level of employee contribution toward single coverage.

Because companies revise their insurance plans to spread some costs to workers, the actual average cost increase for Colorado employers will be about 8.8 percent in 2009, the Lockton survey said.

The Mountain States Employers Council surveyed its members in August about their expectations for 2009 and found similar results. Companies anticipated an average health plan increase of 11 percent next year, more than triple the projected pay raises of employees.

In order to help contain costs, the percentage of employers offering a health maintenance organization plan increased to 44 percent this year from 37 percent in 2007 in the Lockton survey. About 86 percent of employers are offering preferred provider plans with higher deductibles and out-of- pocket expenses or a high deductible health plan.

Cost-shifting from employers to workers has been a trend for several years now, but it becomes even more accelerated during weak economic times, Lindsay said.

"When unemployment is high and people just need a job, employers tend to shift more costs to the worker, who is happy to just be employed," he said. "When the market tightens, they're willing to share more of the costs."

Rate increases and cost shifting

Health insurance plan renewal rate increases in recent years

* 2009: 13.7 percent

* 2008: 12.9 percent

* 2007: 13.5 percent

* 2006: 12 percent

* 2005: 15 percent

* 2004: 18 percent

* 2003: 19 percent

Employers' cost-shifting strategies

* Increase employee premium contributions for single coverage: 66 percent

* Increase employee premium contributions for dependent coverage: 65 percent

* Increase deductibles: 36 percent

* Increase amount employees pay for prescription drug coverage: 31 percent

* Increase employee out-of-pocket expense: 31 percent

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