Sunday, April 9, 2023

Are Employers Selecting Affordable Healthcare Benefits?

Healthcare costs in the US continue to rise, with employers paying over $13,800 per employee for healthcare in 2023. McKinsey predicts that healthcare spending could take up as much as 75% of discretionary income for those making less than 200% of the federal poverty level. 66% of employees say the cost of receiving care through their current health plan is too expensive, and over half feel that their care is more expensive than expected in the last year.

Arizent's research shows that 70% of employers believe they offer the best possible benefits, but 68% feel that their benefit design is limited by their budget. Employers who describe themselves as innovative are more likely to offer digital health tools and family-building benefits, while most agree on the importance of evaluating benefit offerings each year.

The most commonly delivered benefits are health, dental, and vision insurance, and paid sick leave, but employees desire benefits related to gym access, nutrition support, wellness activities, mental health support, chronic condition support, and family-building assistance.

Telehealth sees high utilization rates, with 72% of employees have participated in some form of virtual care appointment in the last 12 months, while mental health support, family-building assistance, and paid parental leave are used less. Healthcare navigation services are on employers' radar, with nearly 80% of employers motivated to include them to provide a better employee experience, improve health outcomes, and reduce costs.

Full story here