Even in this gloom scenario where the health care system seems uncertain, the employers still have to go on incurring these costs for their companies and do not have any alternate path to follow. Therefore, the employers along with their human resources staffs are required to be aware of the changing trends in the health insurance so that they can select the policies which will benefit the companies greatly.

Survey undertaken by Aon Hewitt in 2011 on health care trend, reveals  that the costs of national medical care is projected to increase by around 10% in 2012. Similarly, an annual survey undertaken in December 2011 by the California Health Care Foundation (CHCF) predicts that in California employers might have to spend an additional 12% towards health care costs. Thus the inflation in health care is expected to be 3 or 4 times that of the national level.  It is expected that this increasing trend will persist in the days to come, thus creating anxiety amongst both the employers as well as the employees who are struggling to meet their medical needs.

If the trends of insurance premiums continue to rise unabated the employers might be forced to withdraw health care coverage to their employees, preferring to pay penalty for non-compliance. A survey conducted by McKinsey in June 2011 included 1300 employers at the level of CEO or CFO  reveal that more than 30% of them prefer to do away with their health care plans. This 30% percentage increased to 50% amongst those that were highly aware of the health care reforms quite well. Apparently, the high level of fines ranging from $2000 to $3000 might look enough to discourage the employers from withdrawing health care coverage for their employees; but the truth of the matter is that such levels of penalties are still only about one quarter of the cost that the employers have to shell out towards health care insurance for their employees.

Parallel study by CHCF also reveal that the co-pays and deductibles are also sky rocketing and that the trend is likely to continue in future as well. The trend of rising deductibles and higher out-of-pocket expenses has forced the employers to pass on the costs on to the employees.

From the above it becomes clear that in 2012 the health care insurance in case of small business is going to change drastically. This poses a greater challenge to the employers who are thinking of cutting down costs towards health care insurance on one hand and shielding their companies from extreme changes in future. It is time for them to relook at their health care insurance plans for their employees in a creative way.