Employers Say They’re Doing Enough to Help with Medical Costs, but Workers Disagree

Why It Matters

Financial stress from rising health costs erodes employee well‑being and threatens core business performance, making effective benefit communication a competitive imperative.

Key Takeaways

• 75% of employers think benefits are sufficient, under 50% of workers agree
• 70% of workers report at least 5% rise in medical expenses
• 22% of employees face medical cost hikes of 15% or more
• 18% delayed care due to financial stress, risking health outcomes
• Perceived benefit gap could raise absenteeism, turnover, and productivity loss

Pulse Analysis

Rising medical expenses have become a headline issue for both employers and employees across the United States. Recent data from Prudential Financial shows a stark perception gap: while most executives feel their benefits packages are robust, a sizable portion of the workforce feels under‑supported. This disconnect mirrors broader macro trends, as healthcare inflation outpaces wage growth, prompting workers to shoulder larger portions of their own medical bills. The study’s findings underscore that cost‑of‑care concerns are no longer peripheral—they are central to talent retention and engagement strategies.

For employees, the financial strain translates into tangible health‑related behaviors. Over a fifth of surveyed workers reported medical cost increases of 15% or more, and nearly one‑in‑five have postponed essential care or medication. Such delays can exacerbate chronic conditions, elevate stress levels, and impair mental health, creating a feedback loop that diminishes overall productivity. The ADP report cited alongside Prudential’s research confirms that cost‑avoidance tactics, like skipping doctor visits, are becoming commonplace, raising red flags for occupational health and safety.

Employers face a clear business case to bridge this perception gap. The potential fallout—lower output, higher absenteeism, and accelerated turnover—directly impacts the bottom line. Companies that adopt a holistic approach—combining transparent communication, flexible spending accounts, and wellness programs that address financial literacy—stand to mitigate these risks. By aligning benefit messaging with employee experiences and offering tangible support for rising health costs, firms can strengthen loyalty, safeguard productivity, and position themselves as employers of choice in a competitive talent market.