Multiple factors increased costs in the healthcare industry in 2022, including the ongoing supply-chain impacts of the Covid-19 pandemic, geopolitical instability, and uncertainty around the global energy supply. As a result, most employers are now grappling with how to offer employees competitive health benefits while mitigating rising inflation and the overall impact on their bottom line.

It's a problem that is not going away, as medical costs continue to rise rapidly. According to the World Health Organization, global spending on health more than doubled in real terms over the past two decades, reaching US$8.5 trillion in 2019, or 9.8 percent of global GDP. However, these expenditures were unevenly distributed, with high-income countries accounting for approximately 80 percent.

In the United States, employers are increasingly seeing medical benefits as crucial not only to attract and retain employees, but also to support worker focus and productivity. Unexpected healthcare expenses can be a significant stressor for employees. The average American consumer has a combined balance in checking and savings accounts totaling $5,300. That means unanticipated healthcare costs might quickly become overwhelming—and the resulting financial stress could increase employees' physical and mental illness, reduce their productivity, increase burnout, and lead to higher turnover rates.