Skip to main content
main content, press tab to continue

Employers move to stem rising healthcare costs and boost affordability

Findings from the 2022 Best Practices in Healthcare Survey

November 2, 2022

Healthcare costs continue to rise, and employers are taking action to help with employee affordability and controlling costs.
Health and Benefits
Infographic - descriptive text follows

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
Related content tags, list of links Infographic Health and Benefits
Contact us