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The Case for Corporate Wellness
Strategic Finance
IT’S OFFICIAL! The United States has cracked the $10,000 barrier, up from $5,386 in 2002. No, we aren’t talking about the average annual pay raise per employee.We’re referring to America’s average annual healthcare spending per employee, according to the “2010 Health Care Cost Survey” by Towers Watson.
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Towers Watson
As this edition of our annual Health Care Cost Survey goes to press, U.S. employers fi nd themselves at a crossroads. The eff ects of a severe economic downturn have yet to be shaken off ; sweeping reforms of the health care coverage system are under discussion in Washington, and health care costs continue to climb.
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Mayo Clinic
In 2005, health care expenditures in the United States reached nearly $2 trillion,1 with U.S. employers shouldering the majority of this burden. In 2007, health care costs for U.S. employers increased another 7 percent, despite vigorous attempts to control health care spending.2 In dollar terms, that translates into an average hike of $575 per employee, for an average total cost of $8,796 per employee.2 It’s no secret that these mounting costs are eroding profit margins, and in some cases, threatening the survival of U.S. companies.
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