Mercer: Half of large employers plan to shift health plan costs onto employees

Summary

Employers are looking for ways to manage costs, cover popular weight loss drugs and offer well-being and mental health options.

Source: HR Dive

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Q1: What are the current trends in how large employers are managing health plan costs in the United States?

A1: Large employers in the United States are increasingly looking to manage health plan costs by shifting some of these costs onto employees. This approach often includes increasing employee contributions towards premiums, co-pays, and deductibles. Employers are also exploring ways to cover popular weight loss drugs and provide well-being and mental health options as part of their health plans.

Q2: How does the shift of health plan costs to employees impact their overall financial well-being?

A2: Shifting health plan costs to employees increases their out-of-pocket expenses, which can strain their financial well-being. Employees may face higher premiums, deductibles, and co-pays, potentially leading to deferred medical care due to cost concerns. This can result in increased financial stress and potential long-term health consequences.

Q3: What role does the Affordable Care Act play in the current landscape of employer health plans?

A3: The Affordable Care Act (ACA) introduced reforms aimed at expanding healthcare coverage, including employer mandates and subsidies for low-income individuals. However, the ACA's impact on employer health plans has been mixed, with some employers shifting more costs to employees to manage financial burdens while still complying with ACA requirements.

Q4: What are some strategies that employers are using to provide mental health options in their health plans?

A4: Employers are increasingly including mental health services in their health plans by offering access to therapy, counseling, and mental health apps. They are also focusing on creating a supportive work environment through employee assistance programs (EAPs) and mental health awareness initiatives.

Q5: How does the lack of universal health coverage in the United States affect employer-based health plans?

A5: The absence of universal health coverage in the U.S. places a significant burden on employer-based health plans as the primary source of health insurance for many Americans. This often results in employers facing rising healthcare costs and needing to make difficult decisions regarding coverage levels, potentially shifting costs to employees.

Q6: What are the challenges associated with covering popular weight loss drugs in employer health plans?

A6: Covering popular weight loss drugs in employer health plans presents challenges such as high costs and determining coverage eligibility criteria. Employers must balance the potential health benefits of these drugs with their financial impact on plan expenses, often leading to selective coverage or limited options.

Q7: How does the current U.S. healthcare system rank globally, and what are the implications for employer health plans?

A7: The U.S. healthcare system ranks 29th globally due to accessibility and affordability issues. This ranking reflects the challenges employers face in providing comprehensive health plans while managing costs. The high cost of healthcare in the U.S. pressures employers to find innovative solutions to offer competitive and affordable health benefits.