Managing health care costs will be the top priority for almost all US employers over the next two years, followed by improving mental health benefits.
“Many employers find themselves in the middle of a perfect storm,” said Lindsay Hunter, senior director of health and benefits at willis watson towers. “Inflation and rising health care costs; ongoing needs for physical and emotional well-being; and attraction and retention challenges caused by a tight labor market are prompting employers to carefully evaluate their benefits programs and strategies. In particular, they are looking for ways to make healthcare more affordable for themselves and their employees.”
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WTW released its 2022 Emerging Trends in Healthcare Survey this week. With health cost increases showing signs of accelerating, employers are stepping up efforts to make benefits more affordable and raising employee awareness what benefits are offered and how best to access them.
The pandemic and the shift to remote work have contributed to worsening mental health among employees and their families. In response, two-thirds of employers surveyed said ensuring their health and wellness programs support remote workers will be a key priority of their strategy over the next two years. More than six in 10 plan to improve wellness programs and activities to focus on family members’ health concerns.
When asked what their biggest challenges will be in effectively delivering on their health care strategy over the next two years, 73% cited rising prices caused by rising inflation and provider consolidation. More than half identified employees’ lack of awareness of where to find programs to meet their needs as a key challenge.
As the pandemic subsides, virtual care is poised to become an essential and enduring feature of employers’ healthcare strategies. By the end of 2023, 95% of employers are expected to offer virtual care for medical and behavioral health issues, and 61% expect to offer lower cost sharing for virtual care. More than half believe expanding virtual care will help reduce long-term costs and 50% believe it will improve outcomes.
“The pandemic has upended traditional health care and put us on a new path that includes virtual options, which have proven very effective during the pandemic,” said Julie Stone, WTW CEO of Health and Benefits. “We hope that more employers will embrace health care delivery innovations, such as virtual care for physical therapy and lactation counseling, to improve access and better manage their health costs.”
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