The healthcare budget breakdown: The good. The bad. The uh-oh.
As anyone who manages company overhead knows, the annual meeting to forecast your organization’s healthcare budget is rarely a happy occasion. Chances are, the news is bad. Health insurance costs are going up. Stress levels, too. The good news: there’s light at the end of the tunnel. But first, let’s look at the most recent stats.
Sorry to sound like a broken record, but…
Healthcare costs are on the rise, again. A recent report shows that employer healthcare costs are expected to increase by another 7.4% In 2023. That’s after a similar increase in 2022. As the chart below illustrates, healthcare costs have been a rollercoaster ride over the last decade — with costs increasing by an average of 6.5% each year.
Inflation is bad. But healthcare inflation is even worse.
Historically, healthcare inflation has always outpaced other sectors, as this chart explains. Based on a recent report from Statistica, U.S. healthcare inflation increased by 5.4% in 2022, representing one the biggest spikes in the last decade.
Healthcare quickly gobbles up any pay raises.
In order to run your organization, you need employees — hard-working people who deserve a wage increase to absorb the rising cost of living. Sadly, your employees’ last pay raise was eaten up by deductibles and premiums. The end result: That salary bump went to healthcare instead of workers, which can have a negative impact on your job satisfaction and retention numbers.
You can’t control business expenses without first tackling healthcare costs.
For most American organizations, the costs of healthcare benefits are the second-highest overhead expense after employee salaries. But unlike most other business expenses — wages, rent, IT, supplies — you can’t control healthcare costs. Until now.
Finally, some positive news.
Ready to switch and save? Let’s conduct a free cost analysis.
Give us a few details about your employee population, including demographics and geographic reach. Our team will run the numbers and provide an estimate of your potential savings. It’s a fast, easy and free way to see impact that Imagine360 can have on your healthcare spending.
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