Identifying gaps in benefits offerings can be complex, as it requires a careful assessment of employee preferences, trends, and organizational resources. However, this task is vital; benefits offerings can lead to increased employee engagement and satisfaction. Consider the following strategies for identifying and addressing these gaps:
The Centers for Medicare and Medicaid Services (CMS) estimates annual U.S. healthcare spending to reach approximately $7.2 trillion in 2031. In 2022, healthcare expenditures were expected to hit $4.4 trillion, growing at a rate of 4.3% a year; however, from 2022 through 2031, U.S. healthcare spending is expected to grow on average 5.4% per year compared to a 4.6% increase in gross domestic product (GDP) over the same period. By 2031, health care is expected to account for 19.6% of the United States GDP.
The CMS report highlights how healthcare spending will increase over the next decade. According to the agency’s projections, medical spending across all major sectors has returned to pre-COVID-19-pandemic levels, with hospitals being the most significant cost driver in 2022. From 2022 through 2031, hospital spending is projected to increase faster (5.8%) than physician and clinical services (5.3%) and prescription drugs (4.6%). As a result, healthcare costs will likely become a more significant part of American household spending. Understanding how such spending may increase can help employers act now to protect themselves against increasing healthcare costs and better support their employees.
This Blog Post is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2023 Zywave, Inc. All rights reserved.