A new report showed that less than half of employers are confident in the practices of hospitals and pharmacy benefit managers.
The survey was published Wednesday by the National Alliance of Healthcare Purchaser Coalitions (National Alliance). It polled 172 employers that are members of coalitions affiliated with the National Alliance.
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About 71% of employers said they’re concerned about hospital charges for services provided, and 69% are concerned about the integrity and conflicts of hospital billing practices. In addition, 51% said they’re worried about the integrity of PBM administration.
The survey also found that eight in 10 employers think drug costs, high-cost claims and hospital prices are a “significant threat to affordability.” About 80% of employers are supportive of hospital and pharmacy benefit manager reforms that aim to reduce healthcare costs.
“Employers are frustrated that the healthcare system is designed to enrich the middlemen and is not delivering improvements in affordability, access or quality for purchasers or employees and their families,” said Michael Thompson, National Alliance president and CEO, in a statement. “Increasingly the fox is guarding the henhouse, and both are exploiting a dysfunctional system at the expense of making it better. Employers are starting to take actions, both on the market and policy fronts, to realign the system to reduce conflicts and improve value.”
Additional findings from the survey include:
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- A top priority for employers is attracting and retaining employees, with 81% saying they strongly agree with this. However, 91% said that rising healthcare costs are making it difficult to be competitive with other employers.
- Many employers are offering obesity benefits, with the most common being lifestyle programs (79% offering this), bariatric surgery (69%) and obesity medications (54%). Over the next few years, employers are considering a more phased approach to addressing obesity through lower-cost drugs and behavior change. They’re also looking at collaborative care models and more are considering covering obesity medications.
- The most common women’s health benefits are mental health (90% offer this), parental leave (76%) and maternity support (69%). More employers are considering menopause support, caregiving support and reproductive health services in the next few years.
- More than 70% of employers offer mental health services, provide programs that reduce stigma and work with their vendors on affordability and quality issues. Looking ahead, employers are focused on cultural competency and vendor accountability.
- Several health equity initiatives are gaining momentum. Current top initiatives include engaging different departments to discuss company strategies and improving accountability in service provider contracts.
Photo: z_wei, Getty Images
