Controller's Report

Recessions usually bring a spike in the utilization of health benefits. Reason: When jobs are not secure and insurance is tied to employment, employees tend to seek medical care they would otherwise delay. Upshot: While health care per employee rose roughly 6 percent in 2005, 2006, 2007, and 2008, the forecast for 2009 is uncertain. Further, a bump in COBRA claims at many organizations is likely to add upward pressure on cost trends.