Employers expect healthcare costs to rise in 2015

Although U.S. employers expect a 4 percent increase in costs associated with employee healthcare in 2015, 83 percent plan to continue subsidizing and managing health benefits, according to the 2014 Towers Watson Health Care Changes Ahead Survey.

Most employers are concerned with the Patient Protection and Affordable Care Act's 40 percent excise tax, which, beginning in 2018, will be imposed on individual coverage valued at $10,200 and family coverage valued at $27,500. Seventy-three percent of employers said they are somewhat or very concerned they will trigger the tax, and 43 percent said avoiding the tax is the top priority for their healthcare strategies in 2015.

"While employers are committed to providing healthcare benefits for their active employees for the foreseeable future, persistent concerns about cost escalation, the excise tax and workforce health have led to comprehensive strategies focused on both year-over-year results and long-term viability for healthcare benefits and workforce health improvement," said Randall Abbott, senior consultant at Towers Watson. 

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