Author: Tom Gara
Publication: Wall Street Journal
Insurance company Travelers surveyed 1,100 business owners and executives, from companies small and large, to get a picture of what they considered to be the biggest risks facing their businesses. There’s no shortage of things to worry about these days, from the rising costs of weather-related disasters to cyber crime and a sluggish economy.
But one risk has business leaders particularly concerned, more so than any of the things above:
Of all the executives surveyed, 60% said medical cost inflation was the risk that had most increased in the past decade, and 38% said it was the risk their company was least prepared to manage. No other risk rated as high on either measure.
And as you can see in the chart above, some of the most commonly cited risks are closely related: Companies worry that rising medical costs mean that the health insurance they buy will keep getting more expensive, thus raising total employee benefit costs. And as the Affordable Care Act rolls out, they’re also worrying about interpreting the many facets of the law correctly and avoiding penalties for getting things wrong, hence concerns about legal liability and complying with laws.