Cutting through the broken U.S. health care system and introducing the ability for employees to compare providers and care options, while adding transparency, is a critical step in reducing the cost overall. (Photo: Shutterstock)
There is no question health care is expensive. Employer health benefit costs have always been high, and for most employers this ever-rising cost is generally second only to salary expenses. And while it's still unclear exactly how COVID-19 has and will affect costs, it is clear that economic shutdowns have placed a tighter focus on expenses for most employers. Now more than ever the goal of employers is to save money on health benefit costs.
The cost of COVID-19 for employers
Estimates for the impact of the cost of COVID-19 testing and treatment on employer costs range from an increase as high as 7% to a decrease by as much as 4% as expenses may be offset by employees avoiding health care settings and non-essential procedures. In addition, the age and composition of an employer's workforce strongly affects the cost of care for COVID-19.
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