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Tag: healthcare costs

  • What Your Company Can Expect As Employer Health Insurance Costs Climb in 2026

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    Open enrollment season begins November 1, and many employees are stunned by price increases in their company-provided health insurance coverage. The sticker shock many workers feel now were already a source of stress for employers, and next year’s hikes are expected to be steeper, according to a healthcare think tank’s latest report.

    The most recent alert about rising health insurance prices came from KFF, a non-profit organization that monitors the medical sector and healthcare issues. Its 27th annual survey of more than 1,800 businesses with at least 10 employees found premiums for the family plans that most workers opt for rose 6 percent this year, well over twice the 2.7 percent inflation rate during the same period. For employers, that pushed the average annual cost of those plans up to nearly $27,000, with about 23 percent of the outlays — or $6,850 —passed along to covered workers.

    Those findings were largely in line with results of a September survey by consulting firm Mercer, which pegged the rises at 6.5 percent — but only after business owners adjusted plans to pass on part of the higher costs with covered workers. Mercer also found employers expect an additional 9 percent hike in health plan prices next year, slightly lower than the 10 percent or more KFF respondents anticipated.

    “Many employers may be bracing for higher costs next year, with insurers requesting double-digit increases in the small-group and individual markets on average, possibly foreshadowing big increases in the large-group markets as well,” the KFF report said.

    The price differences between plans for small and large companies come down to volume — and leverage. Corporations with big staffs can more easily negotiate lower coverage prices with insurance providers than companies with 200 employees or less, many of which participated in the KFF survey. Consequently, most of those smaller businesses pay higher premiums.

    That means once small business owners pass along the typical 20 percent to 25 percent of those costs to staff, their employees on average wind up paying $12,000 per year for family plans, or nearly twice the national amount KFF identified. Many other entrepreneur-owned companies are denied coverage entirely, with insurers considering them too small to bother with.

    When that happens, workers usually turn to plans offered under the Affordable Care Act, which are also expected to rise even higher amid the tax and spending cuts passed in President Donald Trump’s “One Big Beautiful Bill.” As things stand, pretty much all businesses, organizations and individuals seeking health insurance are on the hook for price hikes.

    Employers told KFF that a big driver of the increases are the surging costs of prescription drugs, especially GLP‑1s medication. That’s now frequently being used for weight loss, and by a far higher number of people than any insurance companies or client businesses expected.

    But prices for virtually all aspects of healthcare — including insurance itself — have spiked as consolidation across the sector continues, concentrating pricing power as competition declines. That evolution is one reason KFF warned of even bigger shocks to both employers and workers in 2026.

    “There is a quiet alarm bell going off,” said KFF President and CEO Drew Altman in comments accompanying the survey’s results, in which coverage of semaglutide weight-loss drugs play an increasingly significant role. “With GLP-1s, increases in hospital prices, tariffs and other factors, we expect employer premiums to rise more sharply next year.”

    But there’s another reason for Altman’s alert. While businesses have managed to make changes in the past to negotiate limited increases from insurers — and shift some higher costs to employees — their margin for maneuver has now significantly narrowed. That’s especially true when it comes to skyrocketing prescription drug prices, which are almost entirely out of their control.

    As a result, many employers may have no other option than to require their staff to shoulder more of their health insurance costs, or simply stop including many expensive drugs and treatments that are pushing expenses up.

    “Employers have nothing new in their arsenal that can address most of the drivers of their cost increases,” Altman warned. “(T)hat could well result in an increase in deductibles and other forms of employee cost sharing again, a strategy that neither employers nor employees like but companies resort to in a pinch to hold down premium increases.”

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    Bruce Crumley

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  • Women’s Take-Home Pay Often Drops 10 Percent During Menopause, a Study Finds

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    The gender pay gap means women on average earn just 85 cents for every dollar made by men, with many cases made worse by differences in education, job type, and work experience. Now a new Stanford University study highlights another issue decimating women’s paychecks. Released in March 2025, this study found that women who seek medical care for their menopause symptoms see a 10 percent reduction in pay within the following four years. We spoke with experts—physicians specializing in hormonal health whose companies also provide innovative menopause benefits—to explore how to support women’s careers, retain top talent, and address this major pay equity issue.

    Led by Petra Persson, an economist, professor, and faculty fellow at the Stanford Institute for Economic Policy Research (SIEPR), the study aimed to quantify the financial toll of entering perimenopause and menopause. The findings confirmed what many women already know: common menopause symptoms like hot flashes, brain fog, and fatigue translate directly into economic loss as women cut back on their work hours or quit altogether. 

    “For decades, social scientists have analyzed the ‘motherhood penalty,’ but until now, we haven’t known what the financial consequences are for women at the other end of the reproductive spectrum, when they enter menopause,” Persson told the Stanford Report. “We have parental leave policies, and we have policies that support workers when their productivity dips for health reasons, so it makes sense to also have policies that help women during the menopause transition,” she added, noting that 20 percent of working women have reached that life stage.

    According to The 2025 Bonafide State of Menopause Survey, menopause benefits — a combination of medical, mental health, and professional support — offset the impact of menopause and enable women to extend their careers. Though 71 percent of all women surveyed reported that they were unprepared for how disruptive menopause symptoms can be — an 8-percentage point rise since 2023 — just 12 percent of employed respondents reported that their employers offer accommodations for their symptoms.

    It’s a costly disconnect. In 2023, a Mayo Clinic study including over 4,400 employed women as subjects identified that menopause symptoms result in $1.8 billion of missed work time annually in the U.S.

    “Menopause support is not a ‘perk’ — it’s a productivity, retention, and equity strategy,” says Dr. Cristina Del Toro Badessa, a physician and hormone health specialist currently working with Artisan Beaute. “Women at midlife often hold senior, high-impact roles. Supporting them through this transition is both the right thing to do and a smart business decision that directly impacts the bottom line,” she said. 

    Because menopause’s effects and symptoms vary widely among individual women, experts recommend offering a menu of benefit options for employees.

    “When I think about what makes menopause and perimenopause benefits effective, the most important aspect is that they are comprehensive,” says Asima Ahmad, obstetrician, reproductive endocrinologist, and obesity medicine specialist. Ahmad also serves as the co-founder and chief medical officer of Carrot Fertility, she says her own company offers telemedicine consultations for hormone replacement therapy, non-hormonal treatment options, mental and emotional support, clinically supervised education, access to nutritionists, expert-led group sessions, office menopause break rooms, and access to other holistic care options. 

    A flexible, hybrid work schedule can also be a “game-changer for managing symptoms,” she says. “In our 2023 Menopause in the Workplace survey, 72 percent of respondents reported having to deal with feeling self-conscious or uncomfortable after experiencing a menopause symptom at work,” says Ahmad. “Many of these women also reported having to use the restroom for privacy during the workday or take time off of work, with the majority of respondents concealing the real reason for their time off. Providing flexible work hours or the ability to work from home means that women don’t have to take time off to manage their symptoms or feel embarrassed.”

    Though many women report “not feeling like themselves” and consider making major life changes during menopause, Ahmad emphasizes that many symptoms, like memory lapses and mood swings, are often temporary and transitional. “While these symptoms may be highly interruptive for a period of time, most women we see eventually recover,” Ahmad says, suggesting that employees shouldn’t necessarily make permanent career changes. 

    According to the Cleveland Clinic, symptoms tend to begin in one’s mid-40s during perimenopause and last for an average of seven years. 

    Ahmad adds that addressing a long-standing stigma around menopause in the workplace could help alleviate feelings of isolation. Menopause benefits send a strong message to women that they are valued in the workplace at all stages of their reproductive cycles, from fertility and pregnancy, to postpartum recovery, through the menopause transition, and beyond. 

    As for the pace of progress, the Bonafide Health survey suggests that the workplace has become more welcoming in “baby steps,” but has a long way to go. 

    “Companies that act now will be ahead of the curve,” Ahmad tells Inc.

    The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

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    Lauren Gray

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  • Black Book Finds Tariff Pressures Driving Reshoring of U.S. Healthcare Manufacturing

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    Survey shows executives turning to automation, AI, and domestic production amid geopolitical and regulatory shifts


    TAMPA, Fla., April 2, 2025 (Newswire.com)
    –
    A Q1 2025 ad hoc survey conducted by Black Book Research of 60 pharmaceutical and biotech manufacturing executives – half based in the U.S. and half operating offshore – reveals mounting momentum for reshoring U.S. healthcare manufacturing. The findings point to tariff-driven incentives, automation adoption, and supply chain vulnerabilities as central catalysts prompting a strategic shift in sourcing strategies across pharmaceuticals, diagnostics, and medical supplies.

    The data highlights the economic and regulatory realities of rebuilding domestic production capacity in a highly automated, post-pandemic landscape.

    Prompted by actual and anticipated tariffs, federal incentives, and ongoing geopolitical uncertainty, U.S. industry leaders are accelerating efforts to reshore key manufacturing sectors, including pharmaceuticals, diagnostic instruments, biomedical equipment, and medical devices. A resounding 96% of U.S.-based executives and 94% of offshore respondents expect new or expanded U.S. facilities to operate on highly automated platforms, integrating robotics, artificial intelligence, and predictive analytics across production, logistics, and quality control functions.

    In 2024, approximately 350,000 jobs were announced in reshoring and foreign direct investment (FDI) initiatives, with medical and pharmaceutical manufacturing comprising 14% of that total. However, 90% of the surveyed healthcare industry executives anticipate that job creation from these efforts will be “limited” or “highly specialized,” due to increased reliance on automation and digital manufacturing.

    This reflects a broader trend, as robotics and AI adoption in U.S. healthcare manufacturing has surged 70% since 2020 according to respondents. “Reshoring doesn’t mean reversing automation – it means rethinking workforce needs,” said Doug Brown, Founder of Black Book Research. “We’re witnessing a pivot away from traditional factory-line labor toward highly skilled, compliance-driven roles in digital pharma, biotech, and medical supply manufacturing.”

    Regulatory complexity also emerged as a defining factor in reshoring strategy. All respondents expect significantly increased oversight for domestic facilities, with FDA, EPA, and OSHA standards creating a more rigorous compliance environment than many offshore locations. While 97% of U.S. executives cite regulatory complexity as one of their top three reshoring challenges, the majority acknowledged that this oversight results in higher product quality and public trust.

    All thirty U.S.-based executives surveyed anticipate increased production costs stemming from compliance burdens, smart factory infrastructure, and rising labor rates. Nevertheless, 67% of respondents support reshoring as a national strategic imperative.

    Black Book’s consumer sentiment analysis reinforces this stance: 98% of the 100 surveyed Americans favor reshoring critical industries to improve national security, reduce foreign dependency, and stimulate specialized employment.

    The urgency is further underscored by supply chain dependency data: the U.S. currently imports more than 80% of its active pharmaceutical ingredients (APIs) from China and India. The COVID-19 pandemic exposed major vulnerabilities, with most domestic manufacturers reporting severe disruptions and initiating reshoring evaluations in its aftermath.

    “For healthcare providers and systems, reshoring brings dual outcomes – greater product quality assurance and availability, but also higher procurement costs in the near term,” Brown said. “These shifts will ripple across payer-provider negotiations, government purchasing, and long-term public health budgets.”

    With U.S. healthcare spending projected to reach $6.8 trillion by 2030 – 10% of which will be pharmaceutical-related – the cost implications of domestic manufacturing are poised to become a critical issue in US healthcare economics.

    Reshoring is also part of a broader global trend. According to Black Book’s manufacturing insights, 80% of surveyed global manufacturers are currently evaluating reshoring or nearshoring strategies to strengthen operational resilience.

    About Black Book Research
    Black Book is an independent, unbiased, and vendor-agnostic healthcare research firm dedicated to improving patient care and provider staff experiences through data-driven insights. Founded by Doug Brown, author of the best-selling The Black Book of Outsourcing (Wiley & Sons), the firm was originally known for guiding global organizations through the pros and cons of offshore sourcing during the height of the outsourcing boom. Now, two decades later, Black Book applies its expertise to assess the evolving impact of automation, robotics, and AI-particularly as new U.S. tariffs and policy shifts fuel a renewed reshoring movement. The firm brings decades of experience tracking global sourcing, labor, and automation trends.

    Today, Black Book applies this expertise to critical issues shaping the future of healthcare manufacturing and technology policy.

    Source: Black Book Research

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  • Cannabis Use in Older Patients Associated With Lower Demand for Prescription Drugs

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    The use of medical cannabis products by qualified patients ages 50 and older is associated with a reduced need for prescription medications and significant health-related quality of life improvements, according to data published in the scientific journal Cannabis.

    Canadian investigators assessed medical cannabis use patterns and its effect on health outcomes in a cohort of 200+ older patients (average age: 67). Study participants primarily suffered from chronic pain-related conditions. Patients’ health data was collected at baseline and again at three months and at six months. Most patients in the study consumed orally administered cannabis products containing significant percentages of CBD.

    Researchers reported, “Most patients experienced clinically significant improvements in pain, sleep, and quality of life and reductions in co-medication,” including pain medications, antidepressants, and sleep aids. No serious adverse events were reported.

    “To the best of our knowledge, the present report describes one of the largest longitudinal study of authorized older medical cannabis patients to date,” the study’s authors concluded. “The results of this multi-site, prospective, longitudinal study of medical cannabis patients ages 50 years and older indicate that cannabis may be a relatively safe and effective treatment for chronic pain, sleep disturbances, and other conditions associated with aging, leading to subsequent reductions in prescription drug use and healthcare costs, as well as significant improvements in quality of life.”

    The findings are consistent with those of several other studies similarly reporting quality of life improvements and reduced prescription drug use among older cannabis consumers.

    Commenting on the latest study, NORML’s Deputy Director Paul Armentano said: “There is a growing body of evidence showing that cannabis can provide health-related quality of life improvements in older adults. Many older adults struggle with pain, anxiety, restless sleep, and other conditions for which cannabis products often mitigate. Many older adults are also well aware of the litany of serious adverse side-effects associated with available prescription drugs, like opioids or sleep aids, and they recognize the role medical cannabis can play as a potentially safer alternative.”

    The full text of the study, “Medical cannabis for patients over age 50: A multi-site, prospective study of patterns of use and health outcomes,” is available from The Research Society on Marijuana. Additional information is available from the NORML Fact Sheet, ‘Marijuana Use by Older Adult Populations.’

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    NORML

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