Aspire Johnson County survey reveals employer concerns about rising health benefit costs

JOHNSON COUNTY, Ind. – Health insurance costs are rising for many local employers, yet "taking no action" was the most common response when businesses were asked how they are managing those costs, according to a recent survey by Aspire, the economic development organization and chamber of commerce serving Johnson County.

 Aspire Johnson County surveyed 120 businesses from July 27 through August 6 to help shape its policy priorities and advocacy efforts. The findings highlight a dilemma: How can employers offer a benefit that attracts and retains workers and make it affordable to the business?

In the online survey conducted by Aspire’s Business Advocacy Council, 65% of respondents said they were somewhat or very concerned about the cost of providing employee health benefits over the next two years. Among company owners and CEOs who responded, 60% reported that their health insurance costs had risen over the past year. Nearly four in 10 reported double-digit increases of 11% or more, including 15% who saw increases of at least 20%. Just 4% reported a decrease.

When asked about their greatest health care-related cost pressure, 83% cited insurance premiums, ahead of employee out-of-pocket costs, prescription drugs, and replacing workers lost due to health concerns. When asked what steps they had taken to control or manage employee health benefits costs, 44% said they had taken none, despite their widespread concern. Other respondents reported shopping insurance carriers (22%), modifying their plans (22%), or offering wellness initiatives (9%). Just 9% said they had eliminated coverage.

The survey does not explain why some employers have taken no action to manage those costs. One option Aspire offers its members is access to the ChamberCare health insurance program. ChamberCare offers small businesses an easy, cost-effective way to provide health benefits to their employees. 

Respondents represented a range of industries, with finance, manufacturing, professional services, and construction among the leading categories. Small businesses had a strong voice, with 63% reporting fewer than 50 employees in Indiana, while 13% reported more than 500.

Aspire will share the findings and also examine employer health care costs at its October 22 policy summit. Discussions will cover the economics of employer-provided coverage and how major health care providers are navigating changes in funding and policy. Details and registration for the October 22 summit are available at web.aspirejohnsoncounty.com/events.