Healthcare Balancing Act

Are your clients getting a little skittish about their employee benefits plans and what they can afford to include? There’s good reason for employers to be concerned: healthcare costs are expected to rise to more than $16,000 per person[1] in 2025. That number comes amid rising inflation and a historically tight labor market. Fortunately for employers, and members, there may be a simple way to solve this challenge: better benefits, administered by a better TPA.

Common Wisdom, Common Pitfalls

The inflation rate in August slowed to 2.5%[2], which is good news, but many employers are still working to mitigate months of high inflation and their knock-on effects. Some employers may be eager to cut their costs by slashing benefits to the bone, passing out-of-pocket costs to members, and hunkering down until the financial storm passes. There are a couple of big reasons why that’s not a winning strategy.
 
First, quality benefits are increasingly becoming a deciding factor for prospective employees and for retaining existing employees. By slashing benefits, your clients are sending up a huge red flag to their people, both today and tomorrow. We pride ourselves on our ability to help clients deliver competitive benefits in a financially sustainable way. Over the past three years, we’ve managed to keep the medical trend cost for our clients at 3.1 percent, well below industry average of 6.1 percent. That translates to millions of dollars saved for our clients.
 
Second, employee health benefits which provide strong preventive medicine options can lead to massive savings down the road. Encouraging utilization of primary care, health screenings, and other tools for early detection and management of chronic conditions allows employers and members to reduce the chances for larger health problems in the future. Diabetes care, per person, is around $18,000[3] per year, but it can easily balloon in acute cases. However, cutting-edge diabetes management tools can reduce the chance of painful and costly complications for a fraction of the cost while helping members improve their quality of life.
 

The Tools for Success

Modern problems call for modern solutions, and we have a portfolio of cutting-edge plan designs and solutions for clients to choose from. Our Digital Savings Solution takes the message directly to members, encouraging utilization and empowering members to make better healthcare choices. We also use the latest telecommunication technology to create a kind of digital “house calls” from primary care physicians with MyVirtualCare Access, powered by Teladoc.
 
The new solutions like Imaging Concierge service help to make it easy for members to schedule imaging and other tests with approved providers while helping to control out-of-pocket costs for members and employers. Teladoc makes managing diabetes easier and less costly, while Included Health takes a holistic approach to helping members manage their health.
 

A Healthy Future

Next year, and the years to follow, don’t have to be scary or expensive. Our experienced, dedicated team is here to help your clients thrive, no matter what the future brings. Connect with us through the contact form below to get the conversation started.