It’s “Back to School” time, and it’s a great time to learn about the impact of growing costs in your employee healthcare plan.
Did you know?
- Employer-sponsored healthcare plan costs have grown by 20% since 2018, and by over 43% since 2013.
*Mercer - Analysts predict an 8% growth in costs for employer-sponsored plans in 2025.
*PwC - Average employer contribution to plan premiums is approximately $18,000 per employee per year.
*KFF
Let’s see how that applies to your business. Here’s an example
If you have 100 employees and offer an employee healthcare plan:
- Your company is paying about $1.8 million in company-paid premiums.
That’s a lot. And it’s only going to go higher. - At a projected cost growth rate of 8% – your company will be paying almost $150,000 more in company-paid premiums next year.
Again, higher costs that are really affecting your performance.
Now – think about how this impacts your business.
- How much do your sales need to grow – just to break even on higher costs?
- Do you plan to grow, and how many NEW employees will be needed?
- What would you do with $150,000 IF you weren’t paying for the growth in premiums?
Here are some possible uses for $150,000.
- Upgrade your technology with new laptops for your team @ $500 x 100 employees = $50,000
- Purchase new desk chairs for your employees @ $300 x 100 employees = $30,000
- Hire three new salespeople @ $50,000 per year x 3 = $150,000
But if you’re staying with the same large carrier and simply accepting the renewal with a “slight increase”, you won’t be able to afford any of these items … and many others.
These are REAL challenges. And if you’re staying with the same plan with that “slight increase”, then go ahead and adjust your expense budget, and maybe forego other growth plans and upgrades for your team. It’s that much of an impact on your business.
Contact us today to learn how we can help. It takes a simple call to start a conversation.
