In the face of rising health care costs, a new survey reveals that 74% of employers are grappling with the impact on employee wages and benefits, with many anticipating further cost-shifting to their workforce. As they navigate these financial pressures, employers are increasingly prioritizing health equity initiatives and innovative strategies to manage high-cost claims, reflecting a critical shift in how organizations approach employee health and well-being in 2024.

National Alliance of Healthcare Purchaser Coalitions published findings from its Pulse of the Purchaser 2024 survey, conducted between September and October 2024. The survey provides a comprehensive overview of employer perspectives on health care costs, health equity, and strategies to manage high-cost claims. With responses from 188 employers across the nation, the report sheds light on the pressing concerns and innovative approaches being adopted in the current health care landscape.

Rising Health Care Costs and Employee Impact

One of the most significant findings from the survey is the overwhelming concern regarding rising health care costs. The majority of employers believe that increases in health care expenses often lead to trade-offs with salary or wage increases. This sentiment is echoed by 74% of respondents, who agree that higher health care costs will result in further cost-shifting to employees. As one survey respondent noted, “It’s not just about cost control anymore; it’s about survival."

Strategies To Mitigate High-Cost Claims

Employers are actively exploring various strategies in response to the challenges posed by high-cost claims. The survey highlights several key initiatives that employers are currently implementing or considering for the next 1 to 3 years:

  • Reducing risk of neonatal intensive care unit (ICU) claims: 55% of employers are focusing on managed maternity and fertility benefits to mitigate risks associated with neonatal ICU claims
  • Enhanced screening and early detection: 45% are prioritizing enhanced screening measures to catch health issues early
  • Site of care redirection: 40% are considering redirecting care to more cost-effective settings, such as home infusion services

Commitment To Health Equity

The survey findings also reveal a growing commitment among employers to address health equity. A notable 74% of employers are engaging various departments to discuss company strategies related to health equity, marking a 15% increase from 2023. This trend indicates a broader recognition of the importance of equitable access to health care services.

Read the full article about employers grappling with rising health care costs by Giuliana Grossi at AJMC.