Study: Employer Sponsored Health Plans Generate 47% ROI

Study: Employer Sponsored Health Plans Generate 47% ROI

Health insurance is expensive, and we’ve all asked ourselves, “Is it really worth what I am paying?”. For employer-sponsored health insurance, the answer is a resounding YES it is. For every dollar employers spent on health insurance-related costs, they get back $1.47 according to a new study from Avalere Health. This figure in fact is expected to grow to 52% by 2026 from 47%.

The U.S. Chamber of Commerce commissioned the Avalere Health employer study that used publicly available data from the Bureau of Labor Statistics and the Congressional Budget Office to estimate the return on investment employer-sponsored health insurance provides employers with 100 or more employees.  Improved employee productivity, reduced direct medical costs, and tax benefits were the primary aspects that generated benefits for employer-sponsored health plans. Employers who offered employer-sponsored health coverage and wellness programs had healthier employees and spent less on direct medical costs, Avalare found.

The Numbers

Share of Benefits by Component as % of ROI for ESI

Employee productivity reflects the reductions in absenteeism and lost productivity after receiving employer-sponsored coverage. These productivity increases contributed an estimated $275.6 billion in employer benefits in 2022, or 53.3% of all benefits. By 2026, this is expected to rise to $346.6 billion or 55.9 percent of total ROI.

ROI of some of these key components includes $275.6 billion from improved productivity in 2022 and $346.6 billion in 2026, $101 billion from a reduction in direct medical costs in 2022 and $108 billion in 2026, and $119.2 billion or a 23% ROI from tax benefits in 2022 and $139.7 billion in 2026.

Employer-Sponsored Insurance(ESI) offerings can positively influence prospective employees’ decisions to join firms, reducing employer recruitment and vacancy costs. The study’s model assumes that 9% of individuals decide to accept a certain position based on ESI. The analysis estimates that firms with 100 or more employees derived $141M in employer benefits in 2022, growing to $167M in 2026.

Similarly, ESI positively affects the retention of employees. Avalere’s analysis estimates $20.3B in employer benefits from improved retention in 2022 and $24.3B in 2026.


The study finds that industries where firms generally made greater investments in ESI tended to result in larger ROI. Also, since costs associated with turnover and recruitment are positively associated with wages, Avalere estimates higher ROI in higher-wage industries. On the flip side of that same coin, lower ROI was associated with industries that typically have a lower investment in ESI and wellness programs, lower wages, and lower employee participation in ESI and wellness programs.

The full report including the methodology can be found here.

For more information on how Employer-Sponsored Insurance and a PEO can make difference for your small business please contact us at or 855-667-4621.


Study: Employer-Sponsored Health Insurance Produces +47% ROI

Learn how our PEO Partnership can help your group please contact us at or (855)667-4621.

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5 Tips to Staying Healthy During Flu Season

5 Tips to Staying Healthy During Flu Season

You can get ahead of cold and flu season by embracing a few habits that can help support a healthy immune system. 

Plus, boosting your natural immunity doesn’t have to be time-consuming or expensive. 

You may be doing some of these things already. If not, take baby steps to build new habits, because trying to do too much too soon may lead to frustration. 

What steps can you take to fit these five tips into your life?

1. Get a good night’s rest. 

Like stress, sleep deprivation can reduce the effectiveness of your immune system and lead to a longer recovery time if you do get sick. 

Practice good sleep habits like putting away your devices before bed and creating a wind-down routine to help you relax.

2. Watch your stress levels.

Stress can weaken your immune system, making it harder to fight off a cold or the flu. Try practicing stress-reduction techniques such as daily meditation or breathing exercises.

3. Keep your hands clean. 

Wash your hands often, especially when entering or leaving public places or touching surfaces. Cleaning your hands with soap and water for at least 20 seconds can be the best way to remove germs. When that’s not possible, use a hand sanitizer with at least 60% alcohol.

4. Stay active. 

Exercise can help alleviate stress and support your immune system — and physical activity doesn’t have to be intense to make a difference. To get started, you can try taking a daily walk or practicing gentle yoga poses.

5. Focus more on nutrition.

A healthy diet supports a healthy immune system. In addition to the supplements, you may already take, try to eat foods rich in vitamins and minerals, such as:

  • Citrus fruits
  • Spinach
  • Green tea
  • Shellfish


Cleveland Clinic:  We’re now several months into the coronavirus pandemic, and we’re also fast-approaching peak season for yet another viral illness: influenza. Infectious disease specialist Kristin Englund, MD, explains the differences between COVID-19 and the flu, and shares steps we can all take to help us stay healthy this flu season. 


For information about transparency providers and new tech tools contact us at or (855)667-4621.

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Coronavirus Preparedness Plan

Coronavirus Preparedness Plan

Coronavirus Preparedness Plan

As we watch, wait and see the evolution of this Corona Virus outbreak, it is important that employers plan. This is not a situation where you want to panic should this hit your business.

What we know about the virus

Coronaviruses are an extremely common cause of colds and other upper respiratory infections. The symptoms can include a cough, possibly with a fever and shortness of breath. There are some early reports of non-respiratory symptoms, such as nausea, vomiting, or diarrhea. Many people recover within a few days. However, some people — especially the very young, elderly, or people who have a weakened immune system — may develop a more serious infection, such as bronchitis or pneumonia.

Should you worry about catching this virus?

Unless you’ve been in close contact with someone who has the coronavirus — right now, this typically means a traveler from Wuhan, China who actually has the virus — you’re likely to be safe. In the US, for example, all five cases of the virus were recent travelers to Wuhan. The CDC maintains the risk is low to Americans, however, “we need to be preparing as if this is a pandemic, but I continue to hope that it is not,” said Dr. Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases.

How can I protect myself? 

Much like prevention of the spread of any other infectious disease, basic hygiene principles are key to curbing the spread of this virus.

  • Wash your hands often with soap and water for at least 20 seconds. Use an alcohol-based hand sanitizer that contains at least 60 percent alcohol if soap and water are not available.
  • Avoid touching your eyes, nose and mouth with unwashed hands.
  • Avoid close contact with people who are sick.
  • Stay home when you are sick.
  • Cover your cough or sneeze with a tissue, then throw the tissue in the trash.
  • Clean and disinfect frequently touched objects and surfaces.

Be mindful of:

  • Employee wellbeing. Monitor updates from public health officials and governments and keep employees informed and educated about the outbreak and any steps being taken to safeguard their health. Encourage employees to stay home when sick and telecommute if the outbreak worsens.
  • Travel policies. As of Monday, January 27th, the CDC has issued a stronger warning about travel, urging Americans to reconsider travel anywhere in China, issuing a stronger level 4 warning for the specific province where Wuhan is located, stating: “Do not travel to Hubei province, China” due to the coronavirus outbreak.
    The Centers for Disease Control and Prevention urges people to seek medical care right away if they had traveled to Wuhan in the past two weeks and develop a fever, cough or trouble breathing. It says older adults and people with underlying health conditions may be most at risk for severe illness from the virus.
  • Potential supply chain interruption. Identify operational and/or revenue impacts from potential disruptions to key suppliers and vendors. Also consider the possibility of sourcing good or parts from alternative suppliers.
  • Insurance coverage. Review insurance policies, prepare for potential claims, and consult your broker if you have questions.


Please contact us for further information or if you need assistance creating a workable plan.

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Top Five Employee Wellness Program for 2019

Top Five Employee Wellness Program for 2019

All businesses today are aware that a healthy workforce translates to a happier and more productive employees.  Nearly a quarter of participants in SHRM’s latest benefits survey plan to increase their Health & Wellness benefits, whose percentage was a higher than other categories such as professional and career development, flexible work schedules, retirement and family-friendly policies. One unusual offering, workstations that allow people to stand, soared to 44% from just 13% in 2013 when the data was first tracked.

Helping your employees strive towards physical, emotional, mental, and even spiritual well-being can lead to increased productivity and employee longevity. But how can you offer wellness programs that your employees will actually use and find beneficial? There’s no one size fits all solution, and the best way to get started is to invite employee input. Need some inspiration? Here are 5 employee wellness programs that might be the right fit for your company this coming year:

1. Online Wellness/Health Screening

Did you know many health nurses today pay your employees to take an online health risk assessment? Covered members receive a lump sum benefit payment once a year if they complete certain health-related activities (i.e. routine screenings, programs like smoking cessation and weight reduction, and more). Payment options range from $50 to $150. Empire Blue Cross, for example, pays up to $300 for this including smoking cessation online questionnaire and a flu vaccination.

2. Gym Reimbursements

You might not be able to build a gym at the office, but that doesn’t mean you can’t take advantage of your neighborhood businesses. Did you know most health care compare today offer up to $400 annual gym reimbursement? Most include a $200 spousal gym reimbursement as well.

3. Start a Walking Group

This solution is easy, free, and can be employee-driven. Failing to take breaks leads to burnout and eventually employee resentment. Encourage employees to take frequent breaks, but not just to the break room for more artificial lighting and a caffeine boost. Rally eager employees to lead morning, lunch, and/or after-work walking groups. The fresh air is energizing, boosts creativity, and helps feed social wellness needs, too.

4. Create a Healthy Challenge That Isn’t Based on Numbers

Although some businesses have success with Biggest Loser-style in-office challenges, it can also trigger disordered eating. Instead of focusing on numbers, focus on more subjective goals—like how many consecutive days fresh, local fresh vegetables can be part of a lunch. Kicking off these challenges with a brief intro to the importance of a healthy diet for life can help employees re-think their choices.

5. Seek Help from Outside Resources

There are several organizations that employers can turn to for information, research and guidance on wellness programs. Below are just a few for you to explore for helpful ideas on how to develop a culture of health in your organization.

HERO is a national non-profit dedicated to identifying and sharing best practices in the field of workplace health and well-being (HWB). Their mission is to improve the health and well-being of workers, their spouses, dependents and retirees. Check out the wealth of information on their site, including research studies and a blog.

The Health Project is a tax-exempt not-for-profit corporation formed to bring about critical attitudinal and behavioral changes in addressing the health and well-being of Americans. The Health Project focuses on improving personal health care practices and supporting population health by reaching adults where they spend most of their waking hours: at work. Many organizations have adopted health promotion (wellness) programs that encourage good health habits and improved understanding of how individual workers and their families can more effectively use health services.

Harvard Health Newsletters are free newsletters targeted to individuals with the purpose of providing educational information to help them invest in their own health or the health of their families.

quarterly wellness newlstter


Contact us to learn more about how health and wellness benefits can help you attract and retain your top talent.


Break Your Sugar Addiction in 10 Days (Infographic)

Break Your Sugar Addiction in 10 Days (Infographic)

Break Your Sugar Addiction in 10 Days (Infographic)

From our wellness partner, Cleveland Clinic

Do you have a sweet tooth? Most of us will overindulge at times. But the more sugar we consume, the more we want, says Mark Hyman, MD. However, the good news is that people can break the sugar addiction in 10 days. Here’s how.



Break Your Sugar Addiction in 10 Days (Infographic)

Break Your Sugar Addiction Infographic


For more information on setting up a Wellness Program for your group please call us (855) 667-4621

Which Chocolate Is Best for Your Heart?

Which Chocolate Is Best for Your Heart?

Which Chocolate Is Best for Your Heart?

Dark, Milk or White – Which Chocolate Is Best for Your Heart? (Infographic)

From our wellness partner, Cleveland Clinic

Chocolate is good for blood flow, which means it’s good for your heart. But not all chocolate is created equal. Find out about the healthy antioxidants and what else is inside so you can make the best choice of chocolate for your heart health.

Which kind of #chocolate is best for your heart? #milkchocolate #darkchocolate #infographic