The rising cost of healthcare — and the pressures associated with pushing more of the cost onto employees — is causing a shift to self-insurance among employers.
According to a new survey out by Arthur J. Gallagher & Co., an Itasca, Illinois-based insurance brokerage firm, 54% of 3,000 U.S. employers polled are paying at least 5% more for employee medical insurance this year, with nearly a quarter of companies paying at least 10%.
“For employers, one of the highest increases they’re facing is their pharmacy spend,” says John Neumaier, Gallagher’s executive vice president, South Central region. “That’s where you see the movement to self-insurance. They can control how their dollars are being spent.”
Self-insurance gives employers the ability to curb costs through personalizing pharmacy and medical plans to their workforce,...