Berkley Accident and Health Releases 2022 Health Care Pressures Facing U.S. Employees

Rhea-AI Summary

According to the 2022 Health Care Pressures Facing U.S. Employees report by Berkley Accident and Health, 80% of U.S. employees are concerned about rising health care costs. The survey found that 61% have skipped medical services due to expenses, and 38% report having medical debt, often due to high deductibles. The report suggests that employers should assess cost-sharing plans and enhance price transparency to alleviate employee financial stress regarding health care.

Positive

• Employers are encouraged to improve cost-sharing arrangements, potentially leading to better employee satisfaction and retention.
• Berkley Accident and Health offers strategic recommendations to assist employers in supporting employees' health care needs.

Negative

• 84% of employees are worried about health care affordability, indicating a significant market concern.
• 61% of employees have avoided necessary medical care due to cost, suggesting potential negative health outcomes and increased long-term costs.

HAMILTON SQUARE, N.J.--(BUSINESS WIRE)-- U.S. employees are feeling the pressure of health care costs, with 8 in 10 concerned about the cost of care and more than half reporting that they have skipped medical tests, office visits, or prescriptions.

These findings come from the 2022 Health Care Pressures Facing U.S. Employees report, released today by Berkley Accident and Health, a Berkley Company.

“Cost-sharing is a major problem for U.S. employees, who are struggling with increased out-of-pocket costs due to high deductibles and coinsurance,” said Brad N. Nieland, President and CEO of Berkley Accident and Health. “These costs can place the largest burden on those who are least able to pay, forcing patients to skip care, self-pay, and take on medical debt.”

Key findings of the survey:

• Despite having health insurance, respondents worry about their ability to pay for care, with 84 percent concerned about affordability.
• 61 percent admit to skipping a medical test, visit, or prescription due to cost. 56 percent have paid cash because it was cheaper than using their insurance.
• 38 percent report having medical debt, with the majority owing between $1,000 and $10,000. The top reason cited for medical debt was an unmet deductible or coinsurance.
• Most respondents find health costs and billing hard to decipher. 69 percent have received a medical bill they did not expect – typically between $500 and $3,000. Others found it hard to get a price estimate before scheduling a medical service or filling a prescription.

“With these findings in mind, employers and benefit professionals should consider how they can make health care more affordable, easier, and more transparent for employees and their families,” explained Nieland. Employee insights such as these can be key tools for shaping a company’s approach to health care. Health benefits, which provide a competitive advantage when hiring, should be an integral part of any long-term recruiting and retention strategy.

In addition to insurance protection, Berkley Accident and Health also provides insights and advice for companies wanting to better support their workers. The report offered several strategies for addressing employees’ costs and concerns:

• Review cost-sharing arrangements, in light of average employee income levels and other factors
• Consider a self-funded health plan or a group captive program (for small to midsize employers), which both offer significant economic and strategic advantages
• Help address the complexity of care by offering price transparency tools and patient navigation services

“The goal of this report is to spark dialogue between employers and their benefit brokers. We hope it encourages employers to consider innovative solutions that can move the needle on costs and ease of use,” concluded Nieland.

Read the full report here.

Methodology

The findings come from a survey commissioned in March 2022 of 1,000 U.S. adults age 18 and older with employer-based health coverage, balanced across age, gender, U.S. region, and employer size. Respondents received medical coverage either as an employee or a covered dependent.

About Berkley Accident and Health

Berkley Accident and Health is a member of W.R. Berkley Corporation, a Fortune 500 company. Berkley Accident and Health provides an innovative portfolio of accident and health insurance products. It offers four categories of products: Employer Stop Loss, Group Captive, Managed Care (including HMO Reinsurance and Provider Excess), and Specialty Accident. The company underwrites Stop Loss coverage through Berkley Life and Health Insurance Company, rated A+ (Superior) by A.M. Best. For more information, please visit www.BerkleyAH.com.

BAH AD 2022-103

View source version on businesswire.com: https://www.businesswire.com/news/home/20221107005242/en/

Linda King – External Communications

Berkley Accident and Health

2445 Kuser Road, Suite 201

Hamilton Square, NJ 08690

(609) 584-6990

Source: Berkley Accident and Health

FAQ

What are the key findings of the 2022 Health Care Pressures report for U.S. employees from WRB?

The report indicates that 80% of U.S. employees are concerned about health care costs, with 61% skipping medical services due to expenses.

How does the 2022 Health Care Pressures report affect WRB's stock performance?

The findings highlight significant employee concerns about health care costs, which could impact employer strategies and, in turn, affect WRB's overall market position.

What solutions does Berkley Accident and Health suggest for employers regarding health care costs?

The report recommends reviewing cost-sharing arrangements and providing price transparency tools to help employees manage health care expenses.