Summary
Health care costs in the U.S. are increasing, impacting those with insurance from their employers. Employers may pass these rising costs to employees through higher paycheck deductions and out-of-pocket expenses. Employers are facing a substantial price hike in providing health benefits, marking the largest increase in 15 years.
Key Facts
- About 154 million Americans get health insurance through their employer.
- Paycheck deductions for health insurance may increase by 6% to 7% next year.
- Employers face nearly a 9% rise in costs per employee for health coverage.
- 59% of employers plan to pass higher costs to employees via increased deductibles and co-pays.
- The increase in health care costs is driven by entities like drug companies and hospitals.
- The survey by Mercer involved over 1,700 organizations.
- Rising health care costs coincide with consumer concerns about inflation and the economy.
- Employers ultimately decide the cost of health benefits for most Americans under 65.
