Chart: Employer Health Costs Rise Slowly

posted by Alicia Caramenico

on August 2, 2018

Employer-provided health insurance is how most Americans—roughly 180 million people—get their coverage. Most people who count on employer-provided coverage for their health and financial protection aren’t experiencing major premium increases, Axios notes.

In fact, average employer health care costs rose by only 2.6 percent last year, according to benefits consulting firm Mercer. Meanwhile, employers in the rest of the world saw an average increase of 9.5 percent.

Not surprisingly, Mercer’s survey results found specialty prescription drugs are a major cost driver, and the problem will only get worse as hundreds of more specialty drugs will hit the market over the next few years.

The survey also demonstrated the importance of a thriving workforce—workers with physical, emotional, and financial well-being have lower health care costs and are more productive. They key to managing health costs and helping employees thrive? Create a culture of health that includes personalized, easy-to-access health programs.

Watch the interview with AHIP’s Jeanette Thornton, Senior Vice President of Product, Employer, and Commercial Policy, to learn how innovations in health insurance coverage help employers keep their workers happy and healthy.

For more resources about this valuable part of the American health care system, check out our Coverage@Work campaign.

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