Most local employers continued to cover about two-thirds of the cost of their workers' health insurance premiums despite a tight economy and a double-digit rate increase in 2009, according to a new survey by the Rochester Business Alliance.

Employers responding to the 2009 Health Benefits Survey said they are anticipating an average increase of 12.1 percent for their 2010 healthcare insurance premiums. And while only 13 percent of the respondents say they will absorb a majority of the premium increase rather than pass it on to employees, those surveyed already pay a fair share of employee premiums, covering an average of 72 percent of single and 66 percent of two-person and family premiums this past year.

Other contributions changes reported by employers in response to rising premiums include: 19 percent said they will split the increase with employees and 8 percent plan to pass on a majority of the cost. Regarding changes to benefit plans, 9 percent said they plan to reduce benefits or offer lower cost plans, 9 percent plan to offer a high-deductible plan, and 24 percent were undecided. To try to help offset increasing costs, 36 percent said they are considering or planning to offer a wellness program to keep their workforce health. That's up from 30 percent last year.

"It's clear that local employers believe it is essential to offer health care insurance as a benefit to their workers," said Sandy Parker, president and CEO of the Rochester Business Alliance. "But it's also clear that the struggling economy and continually rising premiums are making it much more difficult for them to do so."

"Our members have repeatedly told us that rising health care costs are a huge impediment to the growth of their business. We as a community simply must find ways to lower health care costs if our economy is to move ahead and grow, and the Rochester Business Alliance will continue its efforts toward finding a way to address the rising costs while maintaining quality and access to care."

The average employer contributions by health insurance plan contract level were:

• $252 a month or $3,024 a year for single coverage, up 4 percent from a year ago
• $510 a month or $6,120 a year for a two-person household, up 5 percent
• $600 a month of $7,200 a year for family coverage, up 6 percent.

Some 98 percent of the responding companies said they offer dental plans to their employees, relatively unchanged from last year's survey.

In comparing Rochester's health care costs with other communities, 18 percent said local costs are higher, compared with 20 percent last year; 48 percent said local costs were lower, down from 42 percent a year ago, while 34 percent said costs are about the same, up from 38 percent a year ago.

Other findings of the survey:

• 63 percent of respondents employing part-time employees offer them health benefits, down from 66 percent a year ago.
• 15 percent offer health benefits to retirees, down from 20 percent last year.
• 48 percent offer coverage for domestic partners, down from 51 percent last year.
• 16 percent pay the full cost of single coverage for at least one plan, down from 19 percent a year ago.
• Employer premium contributions as a percentage of payroll increased from 9.7 percent to 10.1 percent this year.
• 36 percent of employers offered two health insurance plans to their employees this year, while 23 percent offered three plans, and 17 percent offered one plan.
• The five plans most offered by employers, in rank order, were MVP Basix, MVP TriVantage, Blue Choice 25, Blue Choice Value, and MVP EPO.

This year, 214 organizations, representing 99,800 employees, responded to the survey, which the Rochester Business Alliance's Training and Business Information Services department conducts annually on behalf of its members. It is one of many annual wage, benefits, and human resource practice surveys conducted by the Rochester Business Alliance each year.