Above Average Rise in Cost of Employee Benefits in 2018
04 Oct, 2017
Employers are looking at ever-rising health costs in the coming year, as it is predicted that the average cost for employee health benefits will rise by over five percent in 2018. How can employers prepare for this above average rise in cost of employee benefits predicted for next year?
Rob Wilson, President of Employco USA and group insurance expert, says, “Employees say that an employer’s health insurance plan is more important to them than their actual salary, but as these numbers show, offering group insurance can be a losing game for employers. For the last five years, employer costs to insure each employee have risen, but now we are looking at a significant bump: five percent or more.”
Wilson points to the fact that Republicans have not yet been able to eradicate the Affordable Care Act, as well as the fact that specialty prescription drug costs are skyrocketing.
“Employers may consider enrolling in high-deductible CDHPs as these plans can help to protect your bottom line. Other cost-saving measures like instituting a surcharge for spouses or employees who smoke can slow cost. Outcome based incentives and wellness programs have also been shown to be useful, as have on-site clinics and prescription purchasing coalitions. Some companies are instilling a policy that requires mandatory generic brand medication, which can help to reduce costs in a meaningful way.”