Oct 28, 2021
Employers expect medical and pharmacy benefit expenses to grow 5.2% in 2022, according to a survey by Willis Towers Watson. A similar survey by Mercer finds that employers expect health benefit costs to rise 4.7% in 2022 compared to 2021.
The Willis Towers Watson survey finds that employers are taking several measures to address affordability, benefit designs, and network management:
- 89% offer coverage for tele-behavioral health while 7% are planning or considering it.
- 55% offer onsite health promotion activities while 17% are planning or considering it.
- 54% evaluate specialty drug costs and utilization performance through the medical benefit while another 29% are planning or considering it.
- 48% use centers of excellence within their health plans while 23% are planning or considering it.
- 49% are adding more choices in all benefits while 23% are planning or considering it.
- 52% are enhancing the enrollment experience while 34% are planning or considering it.
- 45% are leveraging wellbeing vendors to help enhance the employee experience across physical, financial, emotional and social wellbeing while 37% are planning or considering it in the next two years.
- 31% offer access to concierge services with integrated care management programs while 25% are planning or considering it.
- 25% use spousal surcharges when additional employer coverage is available for the working spouse while 9% are planning or considering it.
- 22% structure employee contributions based on pay levels or job grades while 8% are planning or considering it.
- 21% offer narrow networks while 30% are planning or considering offering a narrow network of higher-quality and/or lower-cost providers.
- 13% only have plans that support medication adherence and improved health outcomes in more vulnerable populations while nearly 30% are planning or considering it.
Many Employers Avoid Cost Shifting
Shifting costs to employees is not on the table for many employers in 2022. “Employers…are looking at …strategies that will keep more money in employees’ paychecks and remove cost barriers when care is needed,” said Tracy Watts, Mercer’s National Leader for Healthcare Policy. Employees will pick up an average of 22% of total health plan premium costs in 2022, which is unchanged from 2021. Thirty-two percent of the largest employers will actually decrease the share of the premium that employees contribute in 2022 while only 17% will increase it.
Half of respondents with 500 employees or more and 65% of those with 20,000 or more say improving affordability for lower-wage workers will be an important priority over the next three to five years.
Expanding Support for Remote Workers
Twenty-one percent of employers will add or enhance well-being initiatives for remote workers, such as home delivery of meals or snacks, subsidized ergonomic office furniture, or a stipend to help pay for well-being services or activities. Twenty-five percent are emphasizing virtual care strategies to address potential provider access issues for remotes.
Behavioral Health Care
Seventy-six percent of survey respondents with 500 or more employees say that addressing employees’ mental health will be a top priority over the next three to five years compared to just 44% in 2019. Thirty percent provide a virtual behavioral healthcare option, (often through specialized programs (like Lyra and Ginger) while another 21% are considering it.
