According to the USA TODAY Moneyline on 17 June 2008, employer health care costs will rise about 10% in 2008 and 9.6% in 2009 (study was done by PriceWaterhouseCoopers). The two main reasons for the increase: an increase in the expenses those with insurance are bearing for those without, and a hospital building surge to replace facilities and increase the number of private rooms and outpatient facilities.

The emerging and medium-sized businesses will feel the brunt of this more painfully than most. They are already at a disadvantage because they are trying to attract a talented workforce that has grown to expect Fortune 500 level benefits. But they have little negotiating and buying power in the health insurance markets where the products offered are state regulated and one health issue in their relatively small pool of risk can cause a maximum rating - meaning a family premium cost for a decent medical plan can exceed $2,000.

There are things employers can do to curb these cost increases. They can switch to a high deductible plan that has a health savings account option. They can also pass some of the increased premium cost on to their employees. While this may not be popular, it can sometimes have very little impact on the employee's net take-home pay, especially if the premiums are deducted from the employees paycheck on a pre-tax and pre-FICA basis - which is allowed through a Section 125-C Premium Only Plan (POP).

A CFO Advisor can assist you in deciding on the proper health care plan you can offer your employees that will also help with your business operations.

These represent just a few suggestions to consider.