Health care costs for local employers are growing at a faster rate than anytime in the past five years, even exceeding the national average, according to a new employee benefit survey by consultants Cowden Associates Inc.

The eighth annual survey found a 7.2 percent increase in costs regionally for 2008-09, compared with a 5.7 percent increase the year before.

On average, premiums for individual coverage cost $4,644 for individuals and $13,248 for families, with employers picking up about 75 to 80 percent of the total.

The increase may merely reflect a leveling off after years of decreases, said Cowden Executive Vice President Vince Wolf, who oversaw the survey. But, he said, employers expect the increases to continue in light of recently-mandated coverage benefits.

The new mandates range from parity for mental health coverage to coverage for the treatment of autism to reduced COBRA premiums that will almost certainly increase utilization.

"With the mandates, you're covering things that you typically haven't," said Mr. Wolf. "It's all going to push costs up."

It can be particularly worrisome for employers, Mr. Wolf said, because many cost management tools used in the past, such as reducing benefits, increasing deductibles or raising copayments, may be reaching their limit.

Although employers say their primary strategy for containing costs in the coming year will be shifting costs to their workers, "They feel that they're hitting the point where they would be creating an unattractive benefits package if they go much higher," he said.

"They can't keep going back to that but where else do they have to turn? Their options are being limited and their mandates are increasing."

The prospect of major health care reform in 1993 had the effect of lowering health costs for a time but Mr. Wolf thinks the cost of the new mandates -- an additional 7 percent in mandated benefits by his estimate -- may win out this time.

The survey drew responses from 230 for-profit, nonprofit and government entities in southwest Pennsylvania, Ohio and West Virginia.

Employers were asked for information on medical, prescription drug, dental, basic life term, accidental death and dismemberment, and short- and long-term disability benefits. At least some employees have union representation in 35 percent of the respondents.

The majority of plans are preferred provider organizations, followed by point-of-service plans, then health maintenance organizations. Indemnity plans represented less than 5 percent of the total. High deductible health plans, such as health reimbursement arrangements, have remained flat here.