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
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Title | File Type | File Size |
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Employers move to stem rising healthcare costs and boost affordability | .2 MB |