Workers are paying a larger portion of their health insurance costs as businesses shift more of the burden to their employees to help ride out the economic downturn, an annual study shows.
The average employee contribution toward premiums for family coverage climbed 14 percent this year to nearly $4,000, according to a report by the Kaiser Family Foundation and the Health Research and Educational Trust released Thursday.
Contributions for single coverage grew 15 percent. But total premiums – the amount split by the employer and employee – rose a modest 3 percent for family coverage and 5 percent for single employees this year.
Companies that offer benefits still pay at least 70 percent of the total premium, on average, for their workers. But this year, companies passed most of the premium increases on to employees instead of absorbing them as they usually do, something researchers had not seen before, Kaiser CEO Drew Altman said.
Fed chief: Shut banks threatening system
Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system.
Bernanke also said while testifying before the Financial Crisis Inquiry Commission on Thursday that it was impossible for the Fed to rescue Lehman Brothers from bankruptcy in 2008 because the Wall Street firm lacked sufficient collateral to secure a loan.
Lehman’s former chief executive told the panel a day earlier that the firm could have been saved but regulators had refused to provide help.
The Fed chief presented his analysis of the crisis and views on potential systemwide risks as the panel approaches the end of its yearlong investigation into the Wall Street meltdown.
Burger King, with new owner, looks overseas
Burger King’s new ruler could help its empire expand.
Burger King Holdings Inc. sealed a deal Thursday to sell itself for $3.26 billion to 3G Capital, an investment firm with strong ties to Latin America. The fast-food chain’s chairman and CEO, John Chidsey, said the deal will help it expand more rapidly overseas.
Chidsey, who will become co-chairman of the company after the tender offer is complete, said the $24-per-share deal also brings 3G Capital’s experience and contacts abroad.
Chidsey declined to comment on specific strategies, deferring to 3G Capital. Messages left for 3G Capital weren’t returned, but the company told franchisees and investors in a letter on its website that it plans to invest in the brand and highlighted opportunities in Asia and Latin America. Burger King has more than 12,100 locations around the world.
Dell won’t continue bidding war for 3Par
Dell Inc. is walking away from a bidding contest with rival Hewlett-Packard Co. for data-storage maker 3Par Inc.
Dell said Thursday it won’t match HP’s offer to pay $33 per share for 3Par, or about $2.07 billion. Dell’s decision came barely an hour after 3Par announced it had received Dell’s revised offer of $32 per share and then the even stronger bid from HP.
In a statement, 3Par said Dell’s revised offer contained new terms that it found unacceptable, including a multiyear reseller agreement with Dell that would remain in effect even if 3Par were to be bought by another company.
