Despite the expected increase of employer’s health benefits costs in 2021, most companies do not plan on taking cost-savings measures, according to early results from Mercer’s National Survey of Employer-Sponsored Health Plans 2020.
The survey, which included over 1,000 employer responses since early July, estimates that the health benefits cost for employers will increase by 4.4% for 2021.
This increase follows the upward trend of annual change in health benefit costs since 2019, however, it is still outgrowing the Consumer Price Index and employee wage growth, which have fallen to nearly zero, according to Mercer.
Mercer’s full survey results are expected to be released in November, the company said.
WHAT’S THE IMPACT
When developing their health plans, employers have to consider a variety of factors for the upcoming year according to Tracy Watts, a senior consultant at Mercer.
“Different assumptions about cost for COVID-related care, including a possible vaccine, and