The employer cost dilemma
Health and well-being plans have taken on increasing strategic importance — both from a duty-of-care perspective and for their ability to improve reputation, workplace productivity, employee engagement and retention.
Meanwhile, the variety and sophistication of products have grown, with many firms offering not just insurance benefits but also a broad range of physical, mental, social and financial well-being initiatives — even as the costs of employer-sponsored plans are soaring. In fact, on average, medical costs outpace general inflation by close to three times.
It is no surprise that corporates have been looking for ways to both economize and improve efficiencies, placing increasingly expensive benefits plans on the chopping block. The COVID-19 pandemic has also intensified the need for cost containment. Lockdowns, business interruption, and economic slowdown have put business finances under significant pressure.