Employers, Health Plans Complain about Rise in Health Care Costs.

Byline: David Robinson

Nov. 19--Peter O'Keefe has a case of health insurance sticker shock.

O'Keefe, president of O'Keefe Shaw & Co., has seen the cost of providing health insurance for each of the Amherst investment company's employees rise by almost $770 a year. Now he's beginning to think it's time to do something about it.

"We may be ready to put some kind of cap on it," he said. "The employee has gotten a raise, but they don't know they've gotten a raise."

O'Keefe isn't alone. With employers facing the biggest increases in health insurance premiums in a decade -- in the range of 15 to 20 percent locally -- a growing number of firms are passing on some of those rate increases to workers. Others are increasing co-pays or limiting their contributions.

"It's becoming harder and harder to absorb these costs," said Robert L. Bishop, president of Peerless Environmental Control, an Orchard Park asbestos-removal company.

With the economy slumping and …