Aug 23, 2022
Large employers are deeply concerned about unsustainable health care costs, the pandemic’s devastating effects on their employees’ health, and the need for a more positive and sustainable health care experience, according to a survey by the Business Group on Health.
Rising Costs
Employers experienced an 8.2% cost increase in 2021. Nevertheless, they expect to cover 82% of the cost of employee coverage in 2022, up from 80% the year before. Employer support for family coverage remains at 80% of the premium. Employers have been reluctant to shift costs to employees in the short term. They’re looking at reforms, such as advanced primary care and centers of excellence for specific health conditions.
Nearly all large employers are concerned about prescription drug costs. In 2021, prescription drugs accounted for 21% of employers’ health care costs, with more than half of pharmacy spending going to specialty medications. Employers can bring down costs through pharmacy program tactics like biosimilar coverage and site-of-care and case management.
The Fall-Out of the Pandemic
Employers say that these are the top two results of the pandemic:
- Long-term mental health issues
- Increases in medical services due to delayed care
In response, employers plan to keep many pandemic-related health and well-being offerings in place for the foreseeable future.
Virtual Health
Seventy-four percent of large employers say that virtual health will significantly affect health care delivery. Eighty-four percent say that it’s critical to integrate virtual and in-person care. Otherwise, there could be duplication of services and a fragmented care experience. Thirty-two percent will offer virtual primary care in 2022 while 69% may do so in 2025
