Health Affairs September 22, 2022
Christopher M. Whaley, Gloria Sachdev, Marilyn Bartlett, Ge Bai

Whether US employers like it or not, they are in the health care business. Roughly half of individuals with health insurance are covered through their employers. US employers’ health care costs have increased by 47 percent in the past 10 years, and the annual cost to provide a family with health care coverage has surpassed $22,000. Health care costs are typically the second-highest employer expense after wages and benefits, and employers pay for rising health care costs by decreasing wages and benefits.

Many employers are coping with inflation pressures and labor shortages. To manage these economic conditions and create a more stable business environment, employers can find significant savings in lowering their health care costs. Failure to do so could result in another 50 percent increase in health care costs over the...

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