The survey reached more than 3,000 U.S. employers. Two-thirds (67%) of surveyed companies said that medical and pharmacy benefits are the foundation of their employee benefits package—and so they’re a vital component for hiring and retaining talented employees in a constricting labor market.

“Healthcare is the primary focus of cost-control efforts because it’s the majority of an employer’s benefits spend,” said James W. Durkin, Jr., president of Gallagher Benefit Services, Inc. “Employers should be deliberate about the changes they make to preserve the benefits most coveted by existing employees. Becoming a destination employer requires an open mindset about new and emerging options for curtailing healthcare costs. This approach enables companies to redeploy those funds into other employee-centric benefits that are a differentiator in the ongoing war for talent.”

Download the report’s executive summary at

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