The amount of money US employers and workers spend on health benefits will continue to rise at twice the rate of inflation next year, prompting an increasing number of employers to drop coverage for their employees, according to a survey being released on Monday.

The survey, conducted annually by Mercer Health & Benefits, the human resources consulting group, found that the total health benefit cost rose by 6.1 per cent in 2007, the same pace as last year, to an average of $7,983 per employee. While the cost increases have held steady for three years – after spiking to nearly 15 per cent in 2002 – the increase is occurring at more than twice the rate of inflation.