A study released on Wednesday has shown that costs for health insurance being provided by employers in California increased by 8.4% in the current year. Over and above that, the study has also predicted costs to reach 11.4% next year.

The report stated that employers were spending $9,960 on an annual basis in 2010, in contrast to the national annual average of $9,652. The increase in insurance costs from 2009 has been estimated to be at 6.9%.

The statistics regarding the development were released by a benefits consulting firm known as Mercer, who carried out the survey on 2,800 employers.

Mercer has blamed expensive market places in California for the high costs of insurance being borne by employers. Apart from expensive market places, the surveyor also blamed heavy reliance on HMOs for higher costs, as they happen to provide better benefits, though at higher costs.

A Mercer Consultant, Laura Baker stated that it was unfortunate to know that the higher costs were being borne by employers, despite more and more employees sharing insurance costs with employers. Employers in California have expressed that they would be attempting to keep costs stable next year and that they would try limiting the costs to 7.8%.