Employers move to stem rising healthcare costs and boost affordability

Healthcare costs projected to climb 6% in 2023

2022 expected

• 5.3% - Before plan changes
• 50.% - After plan changes

2023 projected

• 6.4% - Before plan changes
• 6.0% - After plan changes

7 in 10 employers expect moderate to significant cost increases over the next 3 years

2 out of 3 employers will prioritize controlling healthcare costs over the next 3 years

54% expect costs will be over budget in 2022. Only 15% expect costs to be at budget

To address a higher-cost environment:

52% will implement programs or switch vendors to reduce total costs. Only 1 in 4 will shift costs to employees through higher premium contributions

Employers also focus on:

• Subsidization: Use a defined contribution strategy with a fixed dollar amount provided to all employees, differing by plan tier
• 41% - Action taken 2022
• 11% - Planning/Considering
• Value-based cost sharing: Implement higher out-of-pocket costs for use of less efficient services or site of care
• 23% - Action taken 2022
• 19% - Planning/Considering

Concerns about healthcare costs extend to employee affordability

Structure payroll contributions that reduce costs for targeted groups, such as low-wage employees

• 28% - Action taken 2022
• 13% - Planning/Considering

Add/Enhance vendor solutions and voluntary benefits in case of a catastrophic event

• 35% - Action taken 2022
• 27% - Planning/Considering

Add more dollars to healthcare plan without reallocating from other benefits or pay

• 20% - Action taken 2022
• 30% - Planning/Considering

Actions to take now!

• Develop strategies that balance employee affordability goals with rising prices to help avoid budget overages
• Identify potential new cost-saving initiatives and evaluate effectiveness of existing programs
• Engage in employee listening to uncover needs and evaluate healthcare coverage as it pertains to diversity, equity and inclusion