Employer Health Care Costs Will See More Modest Increase

A health benefits consulting firm projects the health benefit cost per employee will increase 4.1 percent in 2019. That’s slightly higher than inflation but less than the double-digit increases the industry has experienced recently.

The markets have stabilized, and health insurance companies, which have returned to profitability, are better able to determine healthcare premiums. Just as importantly, many mid-size and large employers are taking proactive steps to control costs.

“The improvement in the underlying medical plan trend is encouraging because those savings are not solely coming from shifting cost to employees,” said a partner from the consulting firm. “It suggests that there is a ‘quiet revolution’ going on in organizations as they deploy more innovative health-benefit strategies, and that these have started to pay off.”

The report, based on a study of more than 1,500 employers, says while it was common in the past for employers to shift the higher cost of healthcare to employees, this year, employers are relying more on technology to help keep costs in line.

For example, they’re better at targeting employees with specific health issues like insomnia and infertility and offering directed services, which is improving the employees’ quality of life, decreasing trips to the hospital and lowering costs. Others are working with their insurance providers to offer more choice and easier-to-understand healthcare options that are delivered through online platforms.

Source: The Guardian