OTHER NEWS - April 7, 1992

Survey Shows Health Costs Vary Widely: Employers saved an average of $527 per worker last year by using health maintenance organizations rather than traditional medical plans, according to a study by A. Foster Higgins & Co.. The Princeton, N.J.-based employee benefits consulting firm said a survey of more than 2,400 businesses showed that employers spent an average of $3,046 per worker last year for medical coverage through HMOs, compared to $3,573 per employee for traditional “indemnity� plans. Costs varied widely across the country. In Seattle, for example the average indemnity plan cost $2,659 per worker; in the New York City area, the most expensive area cited, the cost was $4,336 per worker.