Employee Benefits Market Check Survey: Healthcare Affordability

As inflation remains at levels not seen in the U.S. in approximately 40 years, its impact is being felt in several industries, and healthcare is no exception. While higher inflation does not directly translate to higher medical premiums, it will play a role due to many other factors. Inflation will impact insurer pricing for the upcoming year and affect consumers’ ability to afford certain services, especially if they are in a high deductible plan.

We conducted a poll during a webcast on May 19 to gain insight into how concerned employers are about affordability for them and their employees. The results are in the charts below.

Key Findings

Whether inflation continues at a high level and whether it has a material impact on group premiums remains to be seen. Still, it is worth noting that 80% of employers that offer a medical plan have some level of concern regarding their renewal for next year. It is also troubling that almost half of employers believe their workforce is struggling with their ability to afford the benefits offered to them. Employers would be wise to begin their planning for next year if they have not done so already. Companies will need to be creative and open-minded as they examine options for themselves and the people they employ.

Should you have any questions regarding any of this information, please contact your local Assurex Global adviser.