With healthcare cost increases returning to pre-pandemic levels, U.S. employers focus on affordability and wellbeing

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[{"type":"text","content":"Employers project health benefit costs will jump more than 5% in 2022, Willis Towers Watson survey finds\nARLINGTON, Va., Oct. 06, 2021 (GLOBE NEWSWIRE) -- U.S. employers are prioritizing healthcare affordability and employee wellbeing over the next two years as health benefit costs are expected to increase by more than 5% and worries over the impact of the pandemic linger. That’s according to a new survey by Willis Towers Watson, a leading global advisory, broking and solutions company (NASDAQ: WLTW). Employers expect their costs for medical and pharmacy benefit expenses to increase 5.2% in 2022, even after taking cost management initiatives into account. The increase is slightly lower than the 5.5% increase employers projected for 2021 but sharply higher than the actual 2.1% increase in 2020. Last year’s increase was the smallest in decades and is seen as an anomaly as many people deferred non-emergency care and rapidly embraced telemedicine during the pandemic. With 86% of employers prioritizing employee affordability, employers will take different approaches regarding absorbing a portion of the cost increases or reflecting these fully in the employee cost share. Survey respondents were asked to identify their key priorities over the next two years. Here are their responses: Key priority over the next two years PercentageAchieve affordable and sustainable costs for organization90%Achieve affordable costs for employees, especially lower wage employees86%Enhance employee wellbeing85%Identify programs that support diversity, equity and inclusion goals and social determinants of health78% “Rising costs and increased utilization fueled by a resurgence in deferred care are driving employers to find new ways to control costs while providing employees with affordable, high-quality care,” said Julie Stone, managing director, Health and Benefits, Willis Towers Watson. “COVID-19 accelerated both provider adoption and employee acceptance of telemedicine and virtual care. Employers see continued use of virtual care as integral to sustaining improvements made in access, quality and cost management. At the same time, employers must now address the Delta variant, encouraging workers to access the care and support they need while grappling with rapidly evolving conditions.” The survey identified several measures employers are taking to addres...

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