Most employees won't leave companies with good healthcare packages: Survey

Most employees won't leave companies with good healthcare packages: Survey

A report by Howden Employee Benefits has revealed a major shift in employer spending toward preventive healthcare.

The study, titled The Changing Face of Employee Health, found that 67% of employers are investing more in prevention and well-being initiatives to reduce future medical claims.

The survey also highlights how employee expectations are shaping strategies.

It found 61% of workers are likely to stay with a company offering strong healthcare package. Meanwhile, 47% consider health benefits important when evaluating new roles.

Regional disparities in preventive healthcare spending

The report also highlights regional disparities in preventive healthcare spending.

Europe leads the pack with 74%, followed closely by the UK (72%), Latin America (71%), and Pacific region (69%).

Asia and India, Middle East, and Africa (IMEA) lag behind at 56% and 55%, respectively.

Howden's insurer data predicts global medical inflation will hit 7% by 2026, net of CPI, pushing overall inflation well above 10%.

Employers are changing their plans amid rising costs

Despite 86% of global employers believing they get a good return on their healthcare spending, many are still changing their plans.

The report found that 23% have already changed insurance providers, while 39% intend to do so. Another 26% would consider switching if costs continue to rise.

Cost expectations vary by region with IMEA expecting a whopping 58% increase in costs.

Mental health and drug prices drive benefit costs

The report highlights the medical conditions and non-medical factors driving benefit costs.

Globally, mental health issues weigh heavily on 52% of plans. In IMEA, cancer (44%) and cardiovascular conditions (42%) are major contributors.

Non-medical factors include general inflation affecting 62% of employers and drug prices impacting 53%.

Glenn Thomas from Howden said healthcare benefits are now essential for talent retention but many workers still feel unsupported.