Inflation’s long-standing impact may affect health care affordability for employers and their workers, but Mercer research finds plan sponsors are already thinking ahead.
Mercer’s latest research, the “Survey on Health & Benefit Strategies for 2024,” asked 721 organizations about their plans to lift affordability for their employees. Of those surveyed, 45% said they are not raising any cost-sharing requirements for their employees, while only 3% said they would.
In fact, to diminish health cost growth without shifting the cost to their employees, almost half (49%) of plan sponsors are implementing programs that improve health condition management, 48% are managing the cost of specialty prescription drugs, and 30% are providing more virtual care offerings outside of standard telemedicine practices.
Mercer’s research comes as a higher number of retirement savers express concerns with health care affordability. A 2023 study by retirement technology provider Smart found 58% of respondents cited health care as a top worry among their retirement-related concerns.
As a result, smaller groups of employers are helping their workers pocket more of their income. The Mercer research found 15% of employers are offering employee-only coverage in at least one medical plan, 18% are using salary-based contributions, 39% said they are “removing financial barriers to seek care” by offering medical plans with a low or no deductible, and 6% are making larger health savings account (HSA) contributions to low-earning workers.
Focus on health equity
A greater number of employers are taking action to advance health equity within their organization, all while supporting goals related to diversity, equity, and inclusion (DEI) strategies, found Mercer.
Twenty-seven percent of employers are collecting information on race, gender identity, and other demographics to facilitate equity analysis, 40% provide advanced search functions that allow members to identify health providers they feel comfortable with, and 24% offer multilingual communications.
Allocating student loan debt support
Independent of health care expenses, plan sponsors are also looking to support their employees outside of the workforce.
With federal student loan payments now set to resume in September, a smaller group of employers are planning to contribute side-by-side with their employees. Twelve percent of plan sponsors surveyed said they would contribute to student loan repayment, and 14% will provide refinancing assistance.
Additional findings from Mercer’s survey can be found here.
SEE ALSO:
- How Much a 65-Year-Old Retiring in 2023 Needs to Cover Healthcare Costs
- Employers Can Lessen Workforce Stress and Strains: Mercer
- Health Care and Living Costs Among Top Concerns for Retirement Savers: Smart
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
