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Employer-Provided Health Plans Generate Major ROI for Companies, Employees
Carrier Updates
Thursday, March 28 2024
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(By AHIP) - More than half of all Americans – over 180 million hardworking individuals and their families – receive their health coverage through their jobs. Employer-provided coverage delivers affordable access to care, effective ways to improve health, and peace-of-mind.

A study from Avalere Health found that employers with 100 or more workers saw a 47% return on investment (ROI) for offering health coverage in 2022. That ROI came in the form of increased recruitment and retention, better employee productivity, reductions in medical costs and disability claims, and tax benefits. That ROI is expected to jump to 52% by 2026, according to estimates from Avalere.

Employers should see a return of $346.6 billion in 2026, including $108 billion in direct medical cost reductions, and $139.70 billion in tax benefits according to Avalere.

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