Large companies are attempting to drive down claims expenditure against its rising private medical insurance premiums by deterring trivial claims and encouraging members to use an alternative to private medical treatment, according to Aon Consulting.

In its 2004 annual benefits survey Aon Consulting the company said 4 in 10 employers (42.6%) surveyed experienced more than a 6% increase in benefit costs.

It said 8 out of 10 employers list the rising cost of premiums as one of their biggest concerns when renegotiating private healthcare arrangements for their employees.

The average single subscription rate currently stands at between £301 and £350. Aon Consulting said it expected the figure to rise to more than £350 by the end of 2005.

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