By Tim Bonfield
The Cincinnati Enquirer

Greater Cincinnati's larger employers held their 2002 health benefit cost increases to just 2.6 percent, much less than predicted nationwide, according to a report issued Monday by Mercer Human Resource Consulting.

Mercer reported a 10 percent increase in Ohio and 11.5 percent increase nationally for large employers.

"This survey does fly in the face of other, previous studies. But something indeed is going on here," said John Sinclair, health care and benefits practice leader for the Cincinnati Mercer office.

BY THE NUMBERS

Highlights of the Mercer Benefits Survey. Figures reflect 2002 data. • National increase in health benefit costs: 15 percent • National increase for employers with 500-plus workers: 11.5 percent • Ohio increase for employers with 500-plus workers: 10 percent • Cincinnati increase for employers with 500-plus workers: 2.6 percent • National benefit costs per worker: $5,758 • Ohio benefit costs per worker: $5,781 • Cincinnati benefit costs per worker: $5,169   - Mercer Human Resource Consulting

The annual Mercer report surveys more than 2,700 employers nationwide and includes data from 27 local employers with at least 500 workers.

This year's 15 percent overall increase in benefit costs for employers of all sizes nationwide was the largest increase since 1990, Mercer said.

Locally, employers have been especially aggressive at holding down costs by changing benefits, switching carriers, increasing employee contributions or all of those, Mr. Sinclair said.

"Most started off the year with significantly higher increases (quoted by their carriers). But the employers recognized they couldn't afford that, so they shifted more of the costs to employees," This is going on throughout the country, but it has been pretty pronounced here," Mr. Sinclair said.

In addition to holding down increases in 2002, Cincinnati's big employers pay significantly less per worker than those at the state or national level.

In Cincinnati, the average "total health benefit cost for active employees'' was $5,169 per employee compared to $5,781 for Ohio overall and $5,758 nationwide.

Mercer's report raised many questions among health industry consultants and interest groups.

"It makes you wonder where all the money has gone," said Russell Dean, executive director of the Academy of Medicine of Cincinnati, local arm of the American Medical Association. "But that makes the assumption that the report is accurate."

Robert Miller, president and chief executive of Cooper Research, a health care market research company, also said he was surprised by the 2.6 percent figure.

"If it's correct, maybe it's because (Cincinnati employers) changed their benefits so substantially that we aren't comparing apples to apples anymore."

Mr. Miller also noted that surveys focusing on large employers do not reflect the costs of small employers, which don't have much bargaining clout with insurers.

E-mail tbonfield@enquirer.com