💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Employers' health insurance costs surge in 2021 as elective procedures resume - survey

Published 12/13/2021, 02:23 PM
Updated 12/13/2021, 02:41 PM
© Reuters. FILE PHOTO: A nurse walks along the hallways of the East Arkansas Family Health Center in Lepanto, Arkansas, U.S., May 2, 2018. Picture taken May 2, 2018. REUTERS/Karen Pulfer Focht

(Reuters) - Health insurance costs for employers rose the most in over a decade this year as Americans resumed non-urgent procedures delayed earlier due to the COVID-19 pandemic, according to a survey published on Monday.

The survey by benefits company Mercer of firms that employ about 118 million people showed the average cost of employer-sponsored health insurance per employee jumped 6.3% this year to $14,542 - the largest rise since 2010.

The increase was just 3.4% in 2020 when the pandemic had strained hospital capacity and forced people to put off elective procedures.

"I think that's (catch-up care) certainly part of the cost driver," Kate Brown, Mercer's Center for Health Innovation Leader, told Reuters.

Brown said several other factors, including claims related to the treatment of long-term effects of COVID-19 and specialty drug pricing, could also be driving the cost rise and may continue into 2022.

The survey, which included 1,745 public and private employers, showed firms expect a "fairly typical" cost increase of 4.4% next year.

But most of them were unwilling to try to reduce the cost increase as they double down on making physical and mental healthcare more affordable for employees dealing with the stress of the nearly two-year-long pandemic.

Tracy Watts, national leader for U.S. health policy at Mercer, said generous health benefits could help companies in attracting and retaining staff in the tight labor market.

© Reuters. FILE PHOTO: A nurse walks along the hallways of the East Arkansas Family Health Center in Lepanto, Arkansas, U.S., May 2, 2018. Picture taken May 2, 2018. REUTERS/Karen Pulfer Focht

Adding or expanding programs to increase access to behavioral healthcare was among the top three priorities for all large employers, the survey showed.

"It's clearly become very salient throughout the pandemic that mental health is a critical need for all people and it's become really more top of mind for most employers over the last two years," Brown said.

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.