Health-benefit costs are expected to exceed salary increases despite the Biden-Harris administration claiming to have helped redress the issue, a study from advisory firm Mercer found.
Employer-provided health insurance expenses rose 7% in 2024 and are expected to rise 5.8% in 2025, with over half of the 1,800 employers surveyed telling Mercer they plan to cut insurance plan costs in the new year, often through increasing out-of-pocket costs for employees. The increase in healthcare expenses is expected to outpace salary growth, with performance-based raises and total salary budgets predicted to rise just 3.3% and 3.6% next year, respectively. (RELATED: EXCLUSIVE: ‘Failed In Every Particular’: Obamacare Caused Millions To Lose Insurance Plans, Premiums To Skyrocket)
Prescription drug spending is the fastest-growing component of the surge in health-benefit costs, rising 7.2% in…
