Employers and workers are feeling the pinch of inflation on US healthcare costs. Senior partner Shubham Singhal and coauthors report that employers are eyeing cost-cutting measures such as reducing nonmedical benefits and boosting employees’ share of out-of-pocket expenses. Moves such as these, though, could amplify talent retention pressures.

Employers say that healthcare premium increases above 4 percent would be unsustainable; many would consider increasing employees' share of costs.
We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you. Please email us at: McKinsey_Website_Accessibility@mckinsey.com

To read the article, see “The gathering storm: The threat to employee healthcare benefits,” October 20, 2022.