Employees have traditionally regarded health insurance as a major part of any competitive benefits package, one that can save them money over private insurance sources. At the same time, employers who provide such benefits like to see their employees maintaining their wellness and productivity. Unfortunately, rising health insurance premiums are creating some serious obstacles for employers who wish to keep offering these benefits.
As the worst of the COVID-19 pandemic receded, the flood of employees returning to the workplace apparently created a spike in the amount they must pay for employer-sponsored health insurance. The per-employee cost at workplaces with more than 50 employees went up by an average of 6.3 percent. At workplaces of 50 to 499 employees (the segment most likely to provide workers with full health coverage), the cost increased by a jaw-dropping 9.6 percent. Overall, the spike from 2020 to 2021 represented the highest one-year increase since 2010.
Employers have traditionally responded to the escalating cost of healthcare by requiring employees to assume a greater share of the health insurance costs (typically by paying higher deductibles). However, the average U.S. worker is currently in no position to take on that extra burden. Many smaller employers have tried to eat the extra costs themselves out of concerns that they will lose both current and prospective workers if they make their health benefits less useful or attractive.
Since the current healthcare situation is obviously hurting employers’ ability to offer affordable, high-quality insurance without sabotaging themselves, employers need alternative solutions and systems. Healthcare providers who work directly with employers could save those employers millions in workers’ compensation, lab testing, and other essential services.
If you’d like to learn more about how the transparency of free market medical care through Direct Primary Care can turn things around for your organization, contact us!
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