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.](/~/media/mckinsey/featured%20insights/charting%20the%20path%20to%20the%20next%20normal/2023/jan/gifs/cod-employeehealthcare-ex3-v3-st-shrunk-timed.gif)
To read the article, see “The gathering storm: The threat to employee healthcare benefits,” October 20, 2022.