CFO Magazine: Costs Slow As Health Care Consumerism Grows

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CFO Magazine: Costs Slow As Health Care Consumerism Grows

Employers have worried since the 2010 implementation of the Affordable Care Act that their costs would increase as a result, but recent data doesn't support that narrative. In fact, growth in health-benefit costs have slowed considerably, although that's partly because employers have taken the initiative by encouraging consumerism and emphasizing a culture of employee health.

The average per-employee cost of health benefits rose only 3.9% in 2014 according to the 2014 edition of Mercer's National Survey of Employer-Sponsored Health Plans. While that was slightly larger than last year's increase, it is still well below the historic average rate of growth. With enrollment certain to rise in 2015 as major provisions go into effect, employers need to keep up the pressure, and it appears they are doing just that.

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CFO Article Co-Author
Tracy Watts

She is a senior partner in Mercer's Washington, D.C. office and the firm's US leader for health care reform. She blogs daily at Mercer/Signal: Health Care Reform



CFO Article Co-Author
Beth Umland

She is director of research for Mercer H&B, based in New York


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