Health-care and workers’-compensation insurance costs at ABO, Inc., have risen 100 percent over the last five years. In 2004, costs were $5,675 per employee per year; in 2009, they have reached $11,560 per employee per year. This doubling of costs mirrors a national trend, with health-care costs anticipated to continue to rise at the same rate for the next ten years. Controlling these escalating expenses will be essential. They are eating into ABO’s profit margin because the company currently pays 70 percent of the costs for employee coverage.
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