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CNN Live At Daybreak

Employees Paying More for Health Care in 2003

Aired December 08, 2003 - 06:16   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Time now, though, for a little 'Business Buzz.' Think you paid more for health care this year? You did.
Sasha Salama has the story from the Nasdaq market site.

So how much?

SASHA SALAMA, CNN FINANCIAL NEWS CORRESPONDENT: Well, considerably more, Carol. And the reason, according to a new survey, is that U.S. companies are still paying more than they did last year for health care. But that gain is actually decreasing. And what I mean by that is a new survey by Mercer Consulting says that U.S. companies are actually spending lower gains on health care than had been expected. The gains in spending by employees rose 10 percent. In other words, they spent 10 percent more in 2003 on health care costs compared to a 15 percent gain the year before.

Why are U.S. companies spending somewhat less, mainly because they are shifting the burden to the U.S. employee. In fact, employees did pay more for health care this year. Not only did they pay more, they are paying an increasing percentage of the premiums and they say increases in their deductibles and their co-payments.

In fact, a health benefits consultant said the last three or four years employers really didn't pass on much of their cost increases. But this year -- and this is a quote -- "they took out their scalpels." Meaning that employees are really taking on more of that burden. So that probably won't be a surprise to many viewers out there. Definitely something to watch out for.

We're also watching out for how the markets may open on this Monday. And right now the futures are pointing to a lower open. One stock to watch is GE. GE is part of the Dow industrials. You can see they were up a bit last week. The Nasdaq lost some ground. And S&P 500 was virtually flat.

General Electric, in a joint venture with Pratt & Whitney, has won a $1.5 billion contract to supply engines for Dubai -- a Dubai carrier. So that's quite a large deal. We'll be watching GE.

And, Carol, I understand that congratulations are in order to you on being engaged. A big congratulations from us here in New York.

COSTELLO: Thank you so much, Sasha, I appreciate it. I'm always so embarrassed when people say that to me. I don't know why. But thank you, I appreciate it. You have a great morning. We'll catch you in the next half hour.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired December 8, 2003 - 06:16   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time now, though, for a little 'Business Buzz.' Think you paid more for health care this year? You did.
Sasha Salama has the story from the Nasdaq market site.

So how much?

SASHA SALAMA, CNN FINANCIAL NEWS CORRESPONDENT: Well, considerably more, Carol. And the reason, according to a new survey, is that U.S. companies are still paying more than they did last year for health care. But that gain is actually decreasing. And what I mean by that is a new survey by Mercer Consulting says that U.S. companies are actually spending lower gains on health care than had been expected. The gains in spending by employees rose 10 percent. In other words, they spent 10 percent more in 2003 on health care costs compared to a 15 percent gain the year before.

Why are U.S. companies spending somewhat less, mainly because they are shifting the burden to the U.S. employee. In fact, employees did pay more for health care this year. Not only did they pay more, they are paying an increasing percentage of the premiums and they say increases in their deductibles and their co-payments.

In fact, a health benefits consultant said the last three or four years employers really didn't pass on much of their cost increases. But this year -- and this is a quote -- "they took out their scalpels." Meaning that employees are really taking on more of that burden. So that probably won't be a surprise to many viewers out there. Definitely something to watch out for.

We're also watching out for how the markets may open on this Monday. And right now the futures are pointing to a lower open. One stock to watch is GE. GE is part of the Dow industrials. You can see they were up a bit last week. The Nasdaq lost some ground. And S&P 500 was virtually flat.

General Electric, in a joint venture with Pratt & Whitney, has won a $1.5 billion contract to supply engines for Dubai -- a Dubai carrier. So that's quite a large deal. We'll be watching GE.

And, Carol, I understand that congratulations are in order to you on being engaged. A big congratulations from us here in New York.

COSTELLO: Thank you so much, Sasha, I appreciate it. I'm always so embarrassed when people say that to me. I don't know why. But thank you, I appreciate it. You have a great morning. We'll catch you in the next half hour.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com