Image of male nurse pushing senior woman in a wheelchair in nursing facility

Employer-sponsored healthcare costs are expected to rise an average of 8% in 2005, according to a new survey conducted by consulting firm Towers Perrin. This percentage is the first time the increase has sunk to single digits in five years.

Employer-sponsored services, such as premiums and doctor visits, are expected to rise 8% — to $7,761 per employee.

The increase in costs is less than in previous years because companies negotiated better plans with healthcare and service providers, such as pharmacy benefit managers. Costs would have risen 11% to 12% without the negotiations, said Ron Fontanetta, a Towers Perrin principal.

Employers shifting costs also added to the lesser increase. At the same time, employee benefit levels fell 2% because workers faced higher co-payments, the report said.