A significant rise in health care expenditures is anticipated in the upcoming year, prompting the Business Group on Health to assist employers in navigating this challenge.
Their recent survey indicates that large employers are bracing for a nearly 8% increase in patient treatment costs next year, marking the steepest growth rate seen in a decade.
CEO Ellen Kelsay of Business Group on Health predicts that employers will respond by becoming more discerning about the health care services their employees utilize. They are likely to implement measures to better control the use of costly treatments for conditions like obesity and diabetes.
As a nonprofit organization focused on health care costs and policy guidance, Kelsay shared insights about these trends. Addressing the anticipated rise in health care expenses, she highlighted employers’ commitment to enhancing the quality of services available to their employees. This may lead to the creation of high-performance networks and centers of excellence, where businesses seek out top-tier providers and encourage their workforce to utilize these optimized services.
When asked whether this focus on quality might limit employees’ choices, Kelsay noted that while employees may encounter more structured networks with potentially fewer providers, the quality of care they receive would likely improve.
The survey also revealed that increasing access to mental health services is a significant priority for large employers, a concern rooted in the understanding that an employee facing personal or professional challenges may struggle with engagement, productivity, and overall health.
Addressing the management of high-cost weight loss medications such as Wegovy, Kelsay explained that employers typically view these as one part of a broader weight management strategy rather than a standalone solution.
They will focus on ensuring these medications are prescribed based on appropriate criteria, such as existing health conditions or a specific body mass index, and are often coupled with lifestyle and behavior modification programs to foster long-term success.
With an impressive eight out of ten leaders at the organization being women, Kelsay reflects that this diversity promotes collaboration, inclusivity, and constructive dialogue within the group.
Having analyzed employee benefits trends for over two decades, Kelsay expressed her surprise at the persistent and sobering escalation of fundamental health care costs—a topic that has been under discussion for many years. Although progress has been made, she emphasized that it remains insufficient in addressing the underlying issues.