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Survey: Large Employers Believe Government Intervention May be Required to Control Costs

Analysis  |  By Melanie Blackman  
   April 29, 2021

Eighty percent of surveyed employers, who said they do not blame any singular cause for excessive costs, agree government intervention would be good for both their businesses and employees.

A new survey found 85% of large employers expect government intervention will be required to help provide coverage and contain costs.

The Kaiser Family Foundation, Purchaser Business Group on Health, and West Health Institute survey also found that 90% of respondents believe in the next 5 to 10 years, the costs of providing health benefits will become "unsustainable."

80% of surveyed employers, who said they do not blame any singular cause for excessive costs, agree government intervention would be good for both their businesses and employees.

"The new political landscape may portend a new and more viable discussion of expanded roles for government in providing health coverage and restraining prices and costs,” the report concluded. “While this has long been controversial, the results of this study suggest that the employers are frustrated by the current healthcare system and their limited opportunities to address cost, and that they may be open to options that involve a broader role for government.”

Additionally, the survey found employers overwhelmingly agree with the need for “greater government roles in providing coverage and addressing healthcare costs," a contrast to the commonly held notion that employers don't want legislators to interfere, according to the report.

The survey also found several policy points that business leaders support, including:

  • Enforcing and strengthening anti-trust laws, and prohibiting anti-competitive conduct, by providers, prescription manufacturers, and health plans
  • Putting caps on hospital prices in non-competitive markets
  • Limiting the amount of out-of-network charges
  • Negotiating and limiting drug prices
  • Offerings of public option plans and lowering the age of Medicare eligibility

Related: Business Group on Health: 5 Healthcare Trends to Follow in 2021

Related: Price Transparency's Slow Burn

Melanie Blackman is the strategy editor at HealthLeaders, an HCPro brand.


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