Healthcare cost pressures drive employers to consider disruptive changes

Healthcare cost increases have reached their highest point in over a decade. 73% of companies are experiencing more cost pressure today than at any time in the past 10 years. This mounting pressure is driving employers to consider disruptive changes to manage their healthcare costs effectively. While cost-shifting actions are common, companies remain optimistic about implementing broad cost-saving actions.

Key insights

• 95% of organizations prioritize company medical costs, followed closely by pharmacy costs and ensuring affordability for employees.
• There's growing momentum for alternative plan designs, with 41% of employers currently adopting these models and 87% planning to do so by 2027.
• Companies are actively optimizing their pharmacy benefits managers. Specifically, 58% have recently audited their pharmacy benefits to focus on claims, rebates, contract compliance and formulary management.
• Coverage for weight loss medications is rising, but employers are implementing guardrails to control costs effectively.
• Employers feel positive about AI's potential impact on healthcare benefits. 80% believe AI will fundamentally change how healthcare benefits are managed in the next three years.

Explore these findings to discover how your organization can proactively reshape its benefits landscape to achieve both affordability and quality care. To access the full report, please complete the form on the right (or below on mobile devices).

Contact

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Courtney Stubblefield, ASA MAAA

Health and Benefits, North America

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