Employers Don’t Expect Revenue to Keep Pace with Medical Benefits Costs

Arthur J. Gallagher & Co.— a risk management and benefits solutions firm—has released the results of its 2016 Benefits Strategy & Benchmarking Survey of more than 3,000 U.S.-based employers, with findings on benefits strategy and trends. Here are some of the findings:


  • Nearly 25% of U.S. employers will experience a double-digit increase in employee medical benefits cost this year. However, 86% anticipate their revenues will either decrease, stay about the same, or increase only slightly in the next two years.
  • Less than half (47%) of U.S. employers surveyed are confident in their current strategy to effectively manage healthcare costs.

Missouri and Kansas:

  • Missouri employers identified controlling benefit costs and attracting talent as their top HR priorities; Kansas employers cited controlling benefit costs and training/developing their people.
  • Both Missouri and Kansas employers identified attracting and retaining a competitive workforce and controlling employee benefits cost as their top operational priorities.
  • While employers agree that promoting and improving employee health and wellbeing is important, 41% of the Missouri employers surveyed do not offer an employee wellness plan; 47% of Kansas companies also do not offer such a plan.