The Lucky Employees Who Pay Nothing for Health Insurance

Strategic Insights -

In a country where most working adults rely on their employers for health insurance, prices for these plans are skyrocketing. In the latest installment of NPR's series "Cost of Living: The Price We Pay," business correspondent Maria Aspan explores alternative solutions. Aspan profiles employees of companies like Bartesian, a startup founded by Ryan Close, which offers its 30 employees and their families comprehensive health insurance without any upfront costs. Meanwhile, organizations like Boston Consulting Group, which covers all insurance premiums for its 20,000 U.S. employees and their families, are reaping benefits from investing in employee health.

Key Takeaways:

  • Ryan Close's startup, Bartesian, offers its 30 employees and their families comprehensive health insurance without any upfront costs, a rarity in the US.
  • Employers like Bartesian and Boston Consulting Group are investing in employee health, which can lead to significant benefits, including lower turnover, increased productivity, and improved recruiting.
  • About 12% of large employers in the US offer some kind of free medical plan for individual employees, according to benefits consultant Mercer.
  • Last year, the average employer paid more than $19,000 per worker for a family health insurance plan, according to the health policy nonprofit KFF.
  • Companies like Boston Consulting Group, which cover all insurance premiums for their employees, are getting a significant return on investment, as healthy employees make for a productive workforce.
  • Alternative solutions to employee health insurance costs are becoming more attractive as prices continue to surge.

Statistics:

  • About 12% of large employers offer some kind of free medical plan for individual employees (Mercer).
  • Last year, the average employer paid more than $19,000 per worker for a family health insurance plan (KFF).
  • Boston Consulting Group covers all insurance premiums for its 20,000 U.S. employees and their families.
  • The input costs of employee health care are immense, with overall US employer spending shifting significantly over the past few decades.

Sources:

  • KFF, "Employer Health Benefits: 2022 Survey"
  • Mercer, "2022 Benefits Survey Report"
  • NPR's series "Cost of Living: The Price We Pay", Maria Aspan, NPR News, New York.