A new report is out that analyzes the return on investment (ROI) that employer-sponsored health insurance (ESI) provides employers with 100 or more employees. Avalere Health’s analysis, on behalf of the U.S. Chamber of Commerce, estimates that ESI provides a 47% ROI to employers in 2022, continuing to rise year-over-year to reach 52% in 2026.

The overall growth in ROI can be attributed to a range of factors, including growing employment over the 5-year period, projected rise in wages, expected increase in per-employee spending on wellness programs, and employee turnover rates remaining flat.

In the report, Return on Investment for Offering Employer-Sponsored Insurance, Avalere Health analyzed various benefits of offering ESI to determine total ROI. These include direct medical costs, productivity, recruitment, retention, short- and long-term disability, and tax benefits. Components that yield the largest benefits of ESI include improved employee productivity, reduction in direct medical costs, and tax benefits.

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