As workplace health insurance costs hit their highest growth in decades, employers are getting creative — setting up onsite clinics, negotiating directly with hospitals, and steering workers toward lower-cost drugs. But despite these efforts, workers are still facing higher deductibles and copays. Family coverage now costs an average of $28,303 per year, up 5% from last year.
Workplace health insurance is getting pricier fast, and employers are scrambling to soften the blow. According to a new KFF survey of more than 1,900 employers, companies are increasingly opening onsite clinics, negotiating directly with hospitals, and bypassing traditional insurers to find lower-cost drug options for workers. About a third of employers now offer access to lower-cost mail-order generic drugs, and some are even exploring direct-to-consumer GLP-1 programs.
For now, employers are largely absorbing the increases rather than passing costs onto workers — a dynamic driven in part by a tight labor market where attracting and retaining talent still matters. But that calculus could shift if economic conditions change, leaving workers more exposed to rising healthcare expenses.
By the Numbers:
Why it matters: With 157 million Americans under 65 covered by employer-sponsored insurance, how companies respond to rising costs has enormous ripple effects on healthcare access and affordability nationwide.
