Most employees won't leave companies with good healthcare packages: Survey
What's the story
A report by Howden Employee Benefits has revealed a major shift in employer spending toward preventive healthcare. The study, titled The Changing Face of Employee Health, found that 67% of employers are investing more in prevention and well-being initiatives to reduce future medical claims. The survey also highlights how employee expectations are shaping strategies. It found 61% of workers are likely to stay with a company offering strong healthcare package. Meanwhile, 47% consider health benefits important when evaluating new roles.
Market variations
Regional disparities in preventive healthcare spending
The report also highlights regional disparities in preventive healthcare spending. Europe leads the pack with 74%, followed closely by the UK (72%), Latin America (71%), and Pacific region (69%). Asia and India, Middle East, and Africa (IMEA) lag behind at 56% and 55%, respectively. Howden's insurer data predicts global medical inflation will hit 7% by 2026, net of CPI, pushing overall inflation well above 10%.
Plan adjustments
Employers are changing their plans amid rising costs
Despite 86% of global employers believing they get a good return on their healthcare spending, many are still changing their plans. The report found that 23% have already changed insurance providers, while 39% intend to do so. Another 26% would consider switching if costs continue to rise. Cost expectations vary by region with IMEA expecting a whopping 58% increase in costs.
Cost drivers
Mental health and drug prices drive benefit costs
The report highlights the medical conditions and non-medical factors driving benefit costs. Globally, mental health issues weigh heavily on 52% of plans. In IMEA, cancer (44%) and cardiovascular conditions (42%) are major contributors. Non-medical factors include general inflation affecting 62% of employers and drug prices impacting 53%. Glenn Thomas from Howden said healthcare benefits are now essential for talent retention but many workers still feel unsupported.