Employer-Sponsored Health Care

Mitigating Employee Care Challenges

Managing Rising Costs

For decades, inflation, a growing and aging population, and increased demand for medical services have given rise to a period of sustained cost increase. This poses an ongoing challenge for employers. According to recent survey data, as many as 7 in 10 employers said they anticipate moderate to significant increases in health care costs over the next three years. Industry data supports this sentiment. McKinsey & Company projects a possible 9-10% inflation-induced renewal increase for employer-sponsored health care through 2026—twice the average rate—as providers pass on incremental medical cost increases to payers, which could then trickle down to employers during contract renegotiations.

Increasing Focus on Employee Well-Being

The quality of health care offered by an employer has become a key factor in employee satisfaction—and a mandatory requirement for companies seeking to reduce attrition and attract and retain top talent.

A recent Mercer study revealed that providing meaningful, individualized benefits signals to employees that their employer “cares”—and that more than three-quarters of employees who believe their employers care about their health and wellbeing also say they are thriving.

The lingering, formative aftermath of 2020 has underscored the connection between mental health and overall well-being. Lockdown and the subsequent shift to remote work took their toll on many workers, and employers quickly recognized the importance of providing mental health support through the workplace. Encouragingly, an American Psychological Association survey of workers in 2022 showed that 71% believe their employer is more concerned about the mental health of employees now than in the past—and that 81% of individuals will be looking for workplaces that support mental health when they seek future job opportunities.

Achieving Quality Health Care Access for a Distributed Workforce

Gartner predicts that fully or partially remote professional services workers will account for 71% of the U.S. workforce in 2023. Employers now face the challenge of ensuring that an employee’s geographical location doesn’t impede their access to quality care.

Providing equitable access to health care for a distributed workforce has compelling advantages, including greater employee satisfaction and better health outcomes. The challenges begin with identifying, prioritizing, and accommodating remote workers’ specific health needs. Supporting a team at a distance requires a closer look at the tools, processes, and support systems that will ensure every employee can make full use of their health care benefits, regardless of location.

Defragmenting the Benefits Ecosystem

Although an attractive health care benefits package is a great way to compete for talent, in an effort to answer every ask, these packages have become increasingly complex. The result is a fragmented experience.

According to a recent McKinsey survey, more than 70 percent of employers work with three or more benefits vendors. Without the proper facilitation, the result is a suboptimal employee experience, which leads to underutilized benefits, misaligned spending, and HR teams who feel the strain of managing a disjointed model.

Given these challenges, employers need a cost-effective, single-source solution that streamlines the employee experience, ensures quality care access for remote and onsite workers, and supports overall well-being.

Finding the Win-Win Strategy

In 2021, 90% of employers cited wellbeing strategy as a key player in overall business strategy. Successful, employee-first solutions will:

Provide high-quality, equal access to localized and virtual care. Employer-sponsored health care programs should offer a level of service that matches how—and where—employees work and live.

When care can be delivered in multiple locations and in various ways by one vendor (rather than a collection of fragmented point solutions), employee engagement, satisfaction, and outcomes change for the better. From the highest levels of the organization to the entry-level, and across distances and geographies, every employee should have a consistent, high-quality health care experience.

To that end, a secure virtual care program that fosters strong patient-provider relationships and offers robust digital access to care teams can bridge care gaps for all workers and improve outcomes in terms of both health and cost. More than 80% of physicians indicate patients have better access to care since using a virtual care program while a growing majority of consumers now say they prefer virtual over in-person visits for a wide range of routine care.

Focus on continuum of care. When health care is seamless, employees and employers both experience a win-win. An integrated health care approach simplifies access, streamlines collaboration and communication among multiple providers, supports full use of employee health benefits, and fosters greater trust between patients and providers—all of which contribute to an optimal employee experience. That connectivity of care also means that when a person needs to see a specialist or surgeon, or get prolonged treatment for cancer, it’s all part of the same ecosystem. In addition, an integrated approach benefits employers by reducing the administrative burden and making procurement more efficient. It’s no wonder that nearly 80% of employers offer (or are interested in adopting) specialized health management programs to improve member experience.

Offer support with navigation and referrals. Searching for in-network providers, booking appointments, and managing insurance claims and medical bills takes time and adds to the stress of an employee in need of care. A health care navigation and referral system simplifies the process by taking the burden off the patient. With a knowledgeable resource to coordinate the patient experience end-to-end, benefits administrators field fewer questions, and employees get direct answers from a single source—all of which contribute to their satisfaction, experience, and overall well-being.

High-quality virtual and localized access, a seamless continuum of care, and patient navigation services are a powerful combination for employers looking to promote better health outcomes, alleviate the administrative burden on HR, and better manage costs. Investing in an integrated approach demonstrates a company’s commitment to employee well-being, contributing to increased productivity, improved morale, and a stronger foundation for business success.