7 in 10 employers expect insurance costs to rise next year: Survey

Employers expect the costs of providing health insurance to their employees to rise, a survey from Willis Towers Watson found.

According to the survey, which included 455 U.S. employers, 71 percent expect the costs of health insurance to rise "moderately to significantly" over the next three years. 

Companies are projecting their costs for health insurance will rise 6 percent next year, compared to 5 percent last year. 

The consulting firm found that 52 percent of employers plan to implement new programs or switch vendors to reduce costs, and 24 percent will implement higher premium costs for employees. 

The latest consumer price index report from the U.S Bureau of Labor Statistics found the cost of health insurance has risen 24.3 percent from August 2021. 

Courtney Stubblefield, health and benefits insights and solutions leader for Willis Towers Watson, said in the release that there is no end in sight to projected cost increases. 

"Yet, with so many potential actions, employers must focus on changes that go beyond addressing their employees' needs to also support efforts to attract and retain talent during a tight labor market," Ms. Stubblefield said.

 

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers

Featured Podcast

Top 40 articles from the past 6 months