Despite being one of the wealthiest countries in the world, the United States healthcare system still needs to improve. According to the 2024 Commonwealth Fund report, the U.S. ranked last among high-income countries in healthcare performance.
As an employer, it can be challenging to improve health benefit offerings while struggling with rising healthcare costs. Through employee benefits consulting, businesses can develop strategies for creating benefits plans that are affordable, competitive, and meet the needs of today’s workforce.
The U.S. Healthcare Crisis: How It’s Affecting Employers and Their Workforce
Rising healthcare costs and an inability to pay significantly impact employers and employees. Employers now face increased financial burdens, leading to potential cost-cutting measures, such as hiring freezes and reduced benefits. Employees may face higher out-of-pocket expenses and reduced compensation as employers are forced to allocate more funds toward healthcare coverage.
Here are some other areas impacted by the U.S. healthcare crisis:
Equity and Access to Care
When segments of their workforce cannot access meaningful healthcare, employers may encounter increased absenteeism, lower productivity, and higher costs related to preventable diseases.
Health Outcomes
Patient health outcomes also suffer as a result of the U.S. healthcare crisis. The United States ranks last in health outcomes, including life expectancy and rates of preventable deaths.
Poor employee health outcomes directly translate to higher insurance premiums, lost workforce potential, and long-term disability costs. Employees who don’t receive the health services they need may exhibit lower productivity and morale in the workplace, negatively affecting the business.
Fragmented Coverage and Administrative Burden
Today, more than 26 million Americans are uninsured. Employers are burdened with filling gaps in healthcare coverage to help keep employees healthy and productive. Overly complex medical billing also overwhelms many employees, and employers are tasked with helping their workforce maneuver a confusing and ever-changing system.
How Employers Can Improve Health Benefit Offerings
Improving health benefit offerings amid the U.S. healthcare crisis can prove challenging for many businesses. Here are some ways that employers can improve employee well-being without hurting their bottom line.
Focus on Employee Health Equity and Coverage Customization
Improving health equity and access to care are significant priorities for many employers. One way that employers can help reduce out-of-pocket costs for their workforce is to advocate for plan designs that cap employee out-of-pocket expenses.
This is especially important for low-wage workers, who are often forced to go without care due to financial restraints.
Leverage Prevention and Wellness Programs to Improve Outcomes
Many companies have implemented initiatives that leverage prevention and wellness programs and improve employee health outcomes. These initiatives focus on proactive health education, mental health support, accessible fitness options, nutrition guidance, and regular health screenings.
Offering these benefits while actively engaging employees and promoting a culture of well-being can encourage participation and sustainable lifestyle changes.
Partner With Data-Driven Consultants to Optimize Healthcare Plans
Partnering with an experienced benefits consultant to optimize healthcare plans can help maximize the value of your healthcare benefits while minimizing costs. Consultants can offer professional market knowledge, analyze your current plan’s effectiveness, negotiate better rates with insurers, design plans customized to your employee demographics, and identify cost-saving strategies.
Consultants use a range of tools and resources, such as benchmarking and health data, to help employers achieve target goals.
Long-Term Solutions
Fixing a broken healthcare system requires long-term solutions focusing on making health services more accessible to employees, improving health outcomes, and offering wellness benefits that fit the business’s budget.
Some long-term solutions that employers should consider include:
Advocate for Larger Structural Changes
Although employers have opportunities to control immediate costs, it can be more difficult to change a healthcare system that needs reforms. However, employers can do their part by advocating for policies that aim to make healthcare more affordable and accessible. This may include engaging in public advocacy campaigns or supporting policies aimed at improving healthcare affordability and accessibility.
Collaborating with Industry Peers
It’s more important now than ever for employers to come together to loudly voice their concerns and push for change in how healthcare services are administered and paid for in America.
Industry coalitions can help leverage purchasing power to secure better terms for health benefits or catalyze the push for universal coverage in the future.
Let New City’s Employee Benefits Consulting Help With Your Benefits Offerings
With rising healthcare costs, accelerated spending, and worsening outcomes, many employers are concerned about how these threats could impact their business and workforce.
With employee benefits consulting at New City Insurance, we help companies better structure their employee benefits while finding ways to save on healthcare spending, all without sacrificing quality care or reducing network access. Request a consultation with a New City professional today.