Question

The cost of employer-sponsored health care benefits are expected to approach $18,000 per employee next year. Big employers project that their total cost of providing medical and pharmacy benefits will rise 5 percent for the sixth consecutive year in 2019. The total cost of health care, including premiums and out-of-pocket costs for employees and dependents, is estimated to average $14,800 per employee in 2019, up from $14,099 this year. Large employers will cover roughly 70 percent of those costs, leaving $4,400 on average for employees to pick up in premium contributions and out-of-pocket expenses.

10. Read the above. For Employers, what is the “OPPORTUNITY COST” of health care? (not the price)

Answer 1

The opportunity cost for employers is the sponsored health care benefits cost for premiums contributors and out of pocket expenses. Opportunity cost focus on employers or consumer benefits in an active role in health care decisions to improve their current situation. It helps for active participation in choosing health care services that employers can make important decisions about their health benefits.