In the upcoming year, there is a looming surge in health care spending, as predicted by the Business Group on Health. The nonprofit conducted a survey revealing that large employers anticipate a nearly 8% increase in the cost of treating patients, the highest growth rate in a decade. Ellen Kelsay, the CEO of Business Group on Health, expects employers to respond by becoming more discerning about the care provided to their employees. They will focus on managing the use of expensive treatments for conditions like obesity and diabetes, aiming to improve the quality of care while controlling costs.
One strategy that employers may implement to address rising health care costs is to establish high-performance networks or centers of excellence. These curated networks are designed to offer high-quality providers to their employees and encourage them to seek services from these providers. While this may result in fewer choices for care, the emphasis is on providing higher-quality care to improve outcomes and control costs. Employers will prioritize the quality of services provided to their workforce as they navigate the increasing cost of health care.
Additionally, the survey conducted by Business Group on Health identified better access to mental health care as a significant priority for large employers. Recognizing the importance of mental health in overall well-being and productivity, employers are seeking to improve access to mental health services for their employees. By addressing mental health concerns, employers aim to enhance employee engagement, productivity, and overall health. Employers are acknowledging the foundational importance of mental health care and its impact on the overall well-being of their workforce.
As the cost of health care continues to rise, employers are also exploring strategies to manage expensive and popular medications, such as weight loss drugs like Wegovy. Employers view these medications as tools in a broader weight management strategy and will focus on identifying the appropriate population to receive these medications. Factors such as recommendations from providers, co-morbidities, and participation in lifestyle and behavioral modification programs will be considered to ensure long-term success with these medications. Employers are taking a more targeted approach to managing the use of expensive treatments to optimize outcomes and control costs.
With a leadership team consisting of eight women out of ten company leaders, Business Group on Health emphasizes collaboration, inclusion, and diversity of perspectives. This approach shapes the vision and direction of the organization, fostering constructive discourse and encouraging different viewpoints. The collaborative nature of the leadership team enables Business Group on Health to navigate the complex landscape of employee benefits trends and address the challenges posed by the continuing increase in fundamental health care costs. Despite ongoing efforts to address these challenges, the rise in health care costs remains a significant concern for employers.
Over the past 20 years, Business Group on Health has closely monitored employee benefits trends, highlighting the persistent increase in health care costs as a major concern. Despite various initiatives and efforts to control costs, the challenge of rising health care expenditures continues to be a pressing issue for employers. The organization remains committed to advising employers on health care cost and policy issues, providing guidance and strategies to navigate the complexities of the evolving health care landscape. As the new year approaches, employers face the ongoing challenge of managing health care costs while prioritizing the quality of care provided to their workforce.
