While inflation continuously hurting the pockets of Americans, the worst may be just around the corner. Healthcare costs are typically three times the rate of inflation in normal circumstances. Combine historical data with hospital labor shortages, supply chain issues, and increasing wages, this year’s increase in your healthcare premiums could prove to be painful on your budget.
The Department of Defense recently confirmed their willingness to include economic price adjustment (EPA) clauses for their contracts and contractors. According to the memo, signed by John Tenaglia, contractors should bear the risk of cost increases and those associated with inflation.
“For contracts being developed or negotiated during this period of unusually high inflation, an EPA clause may be an appropriate tool to equitably balance the risk of inflation between the Government and contractor,” the memo reads.
Since managing the H&W of your contracts is about to get more expensive, you need a partner who will ensure you’re getting the best benefits for the lowest price available. With AXIM’s benefits consulting expertise and administration technology, you’re guaranteed to succeed in this difficult market.
Reach out to one of our talented sales team members today to learn more about what we can do for you to prepare for renewal season or follow us on LinkedIn for more tips on how to mAXIMize your potential.