June 17 (Bloomberg) -- Health care costs for employers will increase almost 10 percent next year, double the rate of inflation, on rising hospital charges and costs for covering the uninsured, a study found.

The rate of health-care spending is expected to be unchanged between 2008 and 2009 after declines in the percentage of growth over the past five years, according to a report released today by research firm PriceWaterhouseCoopers LLP.

Higher costs are partially being driven by hospitals, which are charging greater fees to pay for facility upgrades, the report said. The insured also are paying a greater cost to cover the uninsured because the federal government is under-funding public programs while the number of uninsured is rising, according to the study. Fewer drugs also will be going off patent in 2009 than in 2007.

``The fact that the rate of growth may no longer be declining as sharply is worrisome and could have implications for employers and workers,'' said David Chin, head of PriceWaterhouse's health research group, in a statement. ``With medical cost growth already exceeding the overall inflation rate and inflation heating up in so many other sectors, health-care providers, insurers and employers will have to monitor medical costs carefully if we are to avoid a resurgence of the double- digit annual increases seen in the past.''

If there is a recession in 2009, health care spending will account for a greater share of the overall economy as medical costs will grow and overall spending will decline, the report said. Government programs to help the uninsured could drive down costs for private payers.

`More of a Burden'

``From an employer and government point of view, this implies that health care becomes more of a burden during recession year,'' according to the study said.

To control costs and focus on keeping their large corporate clients, health plans may increase co-payments and deductibles or offer bonuses to employees who take steps to stay healthy, such as undergoing regular medical exams.

The report is based on a survey of 500 employers and health plan providers covering more than 11 million patients.

To contact the reporter on this story: Shannon Pettypiece in New York at spettypiece@bloomberg.net

Last Updated: June 17, 2008 00:00 EDT