Health & benefits

Making healthcare more affordable: why employers should lead 

  • Author
    Julie Potvin
    Senior Director H&B Consulting at Mercer Marsh Benefits
  • Author
    Jamil Kabbaj Renou
    Risk Management & Mercer Marsh Benefits Multinational Leader

For millions of people around the world, paying for healthcare is not a given — it’s a daily struggle.

Whether navigating high medical costs, inadequate insurance coverage or limited public health resources, many individuals are forced to delay or forgo essential care simply because they can’t afford it. This challenge is not confined to low-income countries or specific markets — it’s a global issue, cutting across industries, roles and income levels.

 

Employers have the opportunity to change this. As trusted providers of healthcare support in many markets, organizations are uniquely positioned to address affordability gaps and make healthcare more accessible for their workforce. Organizational leaders need to recognize the close ties between financial pressures and health outcomes. Then take proactive steps to ease those burdens, building benefit strategies that are cost-effective, fair and inclusive.

The cost of care keeps climbing…

While inflation may be stabilizing in some areas of the economy, medical costs continue to rise. According to MMB’s latest Health Trends research, the global medical trend (excluding the US) is projected to reach 10.9% this year. In the US, where healthcare spending is already the highest in the world, the trend after plan design changes is expected to hit 5.8%.

 

Multiple factors are driving these increases, from aging populations and evolving health risks, to advancements in medical technology and growing demand for services. Unless employers urgently take action to help manage these pressures, the rising cost of care could soon become unsustainable for both businesses and their people.

…and employees are feeling the impact

For many employees, healthcare affordability is not an abstract concern — it’s a daily worry. MMB’s latest Health on Demand research found that more than one in five employees (22%) are not confident they can afford the healthcare they or their family need, while almost a third (28%) have delayed seeking care in the past two years due to financial constraints. And this burden falls disproportionately on lower-income workers, part-time and self-employed staff, women and those living with chronic conditions or disabilities.

Health enables productivity, but some employees are less confident they can afford the healthcare they need

Percent of employees who are not confident they can afford healthcare …

Percent of employees who are not confident they can afford healthcare Source: Mercer Marsh Benefits Health on Demand 2025, Smarter Benefits, Stronger Workforce

The image presents a series of statistics that highlight the percentage of individuals affected by various factors, categorized by household income, gender, work status, and health status.

Household Income: For those with an above median household income, 15% are impacted, while a significantly higher 33% of individuals with a below median income experience the same.

Gender: When considering gender, males show an 18% impact, whereas females are more affected at 26%.

Work Status: The statistics reveal that full-time workers have a 20% impact rate. This increases for part-time workers to 29%, and reaches 31% for those who are self-employed.

Health Status: In terms of health, individuals who do not have a health condition or disability experience a 19% impact, while those who do have a health condition or disability face a higher impact rate of 25%.

Overall, the data illustrates how various demographic and socioeconomic factors correlate with the percentage of individuals affected, emphasizing disparities based on income, gender, employment type, and health status.

Delaying healthcare comes with serious risks. When conditions go untreated, they often worsen, leading to higher costs down the line and more time spent away from work. But the effects of healthcare affordability go beyond physical health — they shape how employees feel about their jobs and their employer. Employees who are confident they can afford healthcare are more likely to be thriving in their current role (72% vs 34% for those who are not confident) and to feel their employer cares about their health and well-being (69% vs 38%).

A call to employers: build smart, sustainable healthcare strategies

In the face of rising healthcare costs, some employers may feel pressure to reduce benefits or shift more costs onto employees. But this is a short-sighted move that risks undermining trust, increasing employee stress and ultimately delaying access to necessary care. Instead, employers should focus on cost optimization — designing benefits that are high-quality and cost-conscious, without sacrificing accessibility. Here are five steps organizations can take towards building an affordable, sustainable and inclusive healthcare strategy:
  • Assess and improve care affordability for all employees
    This starts with identifying coverage gaps across different employee groups and geographies, then working to close them in a way that is fair, consistent and scalable. In many parts of the world, particularly where public healthcare is limited or inconsistent, employers already play a critical role in filling systemic gaps. By introducing minimum benefit standards, organizations can ensure that no one is left behind, regardless of location, role or employment status.
  • Optimize healthcare spending without compromising care quality
    Cost containment doesn’t have to involve making cuts. Employers should seek to identify areas where cost efficiencies can be achieved without reducing value or access for employees. Employers can take a proactive role in working with vendors to secure better pricing, steering employees toward high-quality providers, and using health data to design smarter, more targeted interventions. Alternative financing arrangements, like self-insurance, pooled risk or captives, can also offer more flexibility and control over long-term healthcare costs. With the right strategy, organizations can protect both their people and their budgets.
  • Support caregivers and dependents
    Many employees shoulder the financial burden of caregiving, whether for children, aging parents or family members with chronic conditions. Employers can help by offering defined contribution plans or discount programs to offset these costs, particularly for dependents who may not be covered under the company’s health plan. These programs not only help families but also strengthen loyalty and engagement among caregiving employees.
  • Ensure adequate protection for catastrophic illness and injury
    Employers should evaluate whether their current benefits offer meaningful financial protection in worst-case scenarios, such as a cancer diagnosis, serious injury or long-term illness. Without sufficient coverage, employees can face devastating personal costs that derail their financial stability for years. Employers can mitigate this risk by ensuring that all employees, regardless of seniority, contract type or location, have access to baseline protection for high-cost, life-altering events. This is a critical step in building benefits that are both comprehensive and compassionate.
  • Enhance overall financial resilience
    Finally, employers should recognize that healthcare affordability is deeply tied to employees’ broader financial security. Organizations can address this by offering living wages, expanding emergency savings programs and providing financial education. When employees aren’t living paycheck to paycheck, they’re more likely to afford the medical care they and their families need. In short, financial health lays the foundation for physical and emotional health, and both are key to a thriving workforce.

Affordable care is a strategic advantage

Healthcare affordability isn’t just a benefits issue — it’s a business imperative. Forward-thinking employers are already taking steps to close coverage gaps, reduce cost-related barriers and foster more resilient, healthier workforces. By making targeted, equitable investments in affordability, organizations can create smarter healthcare strategies that support people at every level and contribute to a healthier, more secure future for all.
About the author(s)
Julie Potvin

is SME National Leader at Mercer Marsh Benefits, Canada

Jamil Kabbaj Renou

is a Multinational Leader at Mercer Marsh Benefits, UAE Marsh

Health on Demand 2025 report  Smarter benefits, stronger workforce

Global research of over 18,000 employees across all levels captures views on their health and well-being priorities, concerns and values.
Explore the report

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