Globally, health benefit costs are expected to increase 9.9% in 2024, according to a new report from Willis Towers Watson. This is a slightly slower pace than in 2023, which saw a record-high increase of 10.7%.
When asked to list their top health and wellbeing priorities over the next three years, 69% of employers said managing their health plan’s costs and budgeting, while 63% said enhancing mental health programs, a new survey shows.
Hear executives from Quantum Health, Surescripts, EY, Clinical Architecture and Personify Health share their views on digital transformation in healthcare.
When asked what the key issues influencing benefits strategy are, 80% of employers said competition for talent, 67% said rising costs, 41% said a focus on inclusion and diversity and 39% said increasing mental health problems, according to a recent Willis Towers Watson survey.
The Covid-19 public health emergency ended May 11, which will affect employer-sponsored insurance in several ways, said Jeff Levin-Scherz, population health leader of Willis Towers Watson. This includes the coverage Covid-19 tests and vaccines.
Despite ketamine-assisted therapy being approved for treating several mental health conditions, it's generally not covered by insurance or employers. Though that likely won't always be the case, as psychedelics gather more research and employers notice the benefits for their workplaces.
Employers are most interested in switching up their vendor partners for wellbeing programs, the Willis Towers Watson survey found. About 55% of respondents said they will make changes to their wellbeing vendor partners in 2023 or 2024, while 12% already did in 2022.
As technology advances, AI-powered tools will increasingly reduce the administrative burdens on healthcare providers.
Point solutions for areas like behavioral health, family planning and more have risen in popularity in recent years, experts said. But as employers deal with point solution fatigue, healthcare navigation companies are proving beneficial.
Last year’s digital health investment trends have left some startups feeling uneasy about their ability to raise capital in the new funding environment. Venture capitalists think companies that have a demonstrable return on investment and serve multiple stakeholders will probably have the easiest time securing capital, while point solutions and startups in crowded markets will face a tougher environment.
As a possible recession looms, the unemployment rate will likely rise, meaning employers won’t have to work as hard to find workers. Therefore, they’ll likely be cutting down on the digital health companies they work with, and tech vendors will really have to prove their worth in reducing costs, one expert says.
The 10% increase is the largest in almost 15 years, the Willis Towers Watson survey found. Most of the insurers, or 75%, blamed the overuse of care for the rise in medical costs.
The future looks bright for the integrated specialty pharmacy model – for health systems, providers, and most importantly, for patients.
Almost 40% of employers made changes to their retiree healthcare benefits in the last three years, while another 63% plan to in the next three three years, the Willis Towers Watson survey found. Some are looking to replace their traditional group plan offerings with individual insurance through a private marketplace.
Employers expect healthcare costs to increase 6% next year, up from the 5% increase they are experiencing this year. Respondents don’t see this improving down the road either, with 71% saying they anticipate moderate to significant increases over the next three years.
A Willis Towers Watson survey found that among 255 employers, 54 percent are concerned about employees having inadequate access to mental health services and 47 percent are worried about employees receiving insufficient access to substance abuse treatment.
If the transaction goes through the deal would rank as the largest merger in insurance brokerage history, combining Aon, the world’s second biggest brokerage, with Willis Towers Watson, which ranks third.
Moderate cost trends in the large-employer market seemingly contrast with those in the Affordable Care Act’s online marketplaces.