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Employers’ health insurance costs surge in 2021 as elective procedures resume-survey -Breaking

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(Reuters) – Employers’ health insurance prices rose by the highest level in more than a decade due to Americans resuming non-urgent procedures that were delayed previously because of the COVID-19 pandemic. According to a Monday survey.

According to Mercer, a survey of 118 million employees revealed that the cost of employee-sponsored insurance rose 6.3% to $14,542 – this is the highest increase since 2010.

This was 3.4% when the pandemic affected hospital capacities and made it difficult for people to postpone elective surgeries.

“I think that’s (catch-up care) certainly part of the cost driver,” Kate Brown, Mercer’s Center for Health Innovation Leader, told Reuters.

Brown stated that there are many other factors involved in the rise of costs, such as claims regarding the long-term treatment effects of COVID-19, and the pricing of specialty drugs. This could continue through 2022.

According to the survey of 1,745 employers from both public and private sectors, firms expected a cost rise of approximately 4.4% in next year.

They were reluctant to lower the costs, and instead doubled down on physical and mental health care for those who had to deal with stress from the almost two-year-long pandemic.

Tracy Watts, Mercer’s national head for U.S. healthcare policy, stated that companies could offer generous health benefits to help them attract and keep employees in a competitive labor market.

According to the survey, three of the most important priorities for large employers were to add or expand programs that increase access to mental healthcare.

Brown explained that the importance of mental health in today’s pandemic has become clear and more prominent over the years. He also stated, “It’s evident throughout the pandemic that mental well-being is an essential need for everyone. It’s been really top of mind for many employers over the past two year.”

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