How employers can navigate rising health care costs

The prices we pay for care are on the rise. Here are a few tips to help employers navigate the changing landscape.

There’s a lot of talk about rising health care costs, but the discussion stops short of how employers can best handle the steady and significant uptick. According to KFF’s 2023 Employer Health Benefits Survey, the average premium for family coverage has increased 22 percent over the past five years.¹ Possible factors include a growing and aging population that requires more acute care and people increasingly getting the care they deferred during the COVID-19 pandemic.

During that same five-year period, workers’ wages grew by 27 percent and inflation increased 21 percent.²

Having all this data doesn’t provide an answer for how to control costs, but employers can use it as they develop a strategy to address the issue.

What to consider when choosing a group health insurance plan

When you consider an insurance carrier, be sure to evaluate its structure. It can make a big difference in plan affordability and the resources an insurer can provide to help lower care costs. Take note of insurers that are part of an integrated health care system, like the one encompassing UPMC Health Plan, UPMC, and the University of Pittsburgh Schools of Health Sciences. Such a system allows providers and payers to collaborate on delivering high-quality care at low costs.

Partnering with an integrated health care system like ours offers benefits that allow you to:

Manage your company’s health care costs through flexible, affordable medical plans.
Give your employees access to the high-quality care they want and need, including care nationwide through the Cigna Healthcare^SM PPO Network.³
Support your employees’ wellness with access to behavioral health services and 24/7 virtual urgent care visits.
Give your employees peace of mind when they travel with access to global emergency travel assistance.⁴
Offer an employee assistance program (EAP) to provide employees with the resources they need to stay focused and productive. A robust EAP can connect your employees to resources and services that help them achieve work-life balance; deal with family and relationship concerns; and cope more successfully with anxiety, depression, or drug/alcohol issues.

Another critical area to consider when selecting an insurer is the overall value its offerings provide. When you choose UPMC Health Plan, you get quality, access, choice, and value for your company and your employees. Our plans can meet the needs of businesses of all sizes and across industries, and they include robust services for your covered employees at no additional cost:

Digital tools and telehealth: Having access to innovative digital tools can help employees understand their health and ways to improve it. Telehealth ensures that employees have 24/7 access to care and receive a rapid response to their health needs—no matter where they are located.
Spending accounts: There are many spending account options. These accounts can be an effective way to help contain health costs for both your business and your employees. For example, health care flexible spending accounts allow employees to use their tax-free savings to pay for qualified out-of-pocket health care expenses, such as pharmacy and office visit copayments. As an employer, you don’t pay payroll taxes on the funds your employees accumulate.
Health coaching: Offering a health coaching program bolsters traditional benefits by supporting employees in achieving their wellness goals. We offer a variety of programs to help your employees make lifestyle changes and manage chronic conditions, such as diabetes, COPD, and asthma.
Behavioral health support: Offering access to behavioral health tools, programs, and services is a crucial part of maintaining the overall well-being of your business. Our behavioral health coaching enables employees to get help from licensed professionals to address anxiety, depression, substance use disorders, and more.

With UPMC Health Plan, there is a plan for every budget

Employers need to fully understand what their employees need and want when it comes to coverage and network, and the costs associated with them. You can conduct an anonymous survey to get an idea of information, such as where your employees are located in relation to where their doctors are and what plan features and benefits employees want. This can help guide you in selecting a plan that offers the network and coverage your employees need at an affordable price. Many online survey tools are available for free.

Once you have this information, you can use it to compare health plans. Your business size and employees’ location can influence your decision. If you have a midsized business with one office and most of your employees live nearby and work onsite, a narrow network with extended network coverage for travel might make sense for you. Conversely, if you have a combination of onsite and remote employees, you might need a plan with a broad network.

Even if you think you know your employees’ needs, it’s a good idea to ask again so you can re-evaluate based on possible changes to your structure, working arrangements, and current plan.

Connect with us

We can partner with you to find an affordable plan that meets your needs and those of your employees. All of our plans offer access to high-quality care to help your employees get or stay as healthy as possible.

Sources

¹2022 Employer Health Benefits Survey. KFF. Published Oct. 27, 2022. Accessed July 5, 2023. kff.org/report-section/ehbs-2022-summary-of-findings/

²Ibid.

³upmchp.us/nationalnetwork

⁴Ibid.