If there's one thing that benefits leaders have learned during the pandemic, it's to expect the unexpected. (Image: Shutterstock)
As the omicron wave begins to recede, smart employers are thinking ahead to how they can proactively address their workforce's needs through health care spending.
According to a study by the Business Group on Health, fewer employers are taking a wait-and-see approach when it comes to employee benefits. Only 6% of benefits leaders said they were waiting to learn what their employees needed most before expanding their offerings.
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As employers face rising health care costs and continue to fight for talent, they may have to think differently about what they're doing. Here are three areas in which employers are thinking proactively about what — and how — they spend on employee health.
Telemedicine
One area in which benefits leaders are investing new resources is telemedicine. That's the use of technology like phones, computers, and messaging services by medical professionals to provide patient services without requiring them to come to a central location. It's an option that may be well-suited for distributed workforces, in which many people are working from home and are more used to accessing remote services.
The age of telemedicine, long touted as the next big thing in health care, may have finally arrived. Seventy-six percent of benefits leaders are accelerating the telemedicine options they offer employees, according to the Business Group on Health. In 2020, nearly $15 billion was invested in digital health and other technologies designed to disrupt traditional providers in the quest to provide lower-cost, higher-quality population health. In 2021, that figure jumped to more than $29 billion.
It makes sense. Many people have discovered they can work, shop, and entertain themselves from home. Adding health care services is natural.
Mental health
Companies are also increasing what they spend on and offer for mental health. Some of these are crisis care, while others assist employees with long-term management of their mental well-being. Springbuk's 2020–2021 Healthiest Employers application survey found that 95% of employers plan to include stress management in their employee health care offerings this year.
As mental health needs have risen, so has the amount of care that patients are seeking. For example, insurance company Cigna saw a 27% increase in outpatient behavioral health visits from 2019 to 2020, a trend that continued during 2021.
Although this trend is in part driven by an increase in mental health conditions like stress, anxiety, and depression, this cloud does have a silver lining. When people proactively seek out mental health care, they can dramatically improve their lives. According to the American Psychiatric Association, "studies have found that proactive psychiatry is associated with reduced hospital length of stay, enhanced psychiatric service utilization, reduced time to psychiatric consultation, and improved provider and nurse satisfaction."
Despite a decline in telemedicine utilization overall in recent months, the rate used for mental health has remained steady and has become a great alternative to in-person treatment with mental health professionals, according to our 2022 Employee Health Trends Report. We expect that spending on mental health care will continue to increase — and be an attractive benefits option to retain and hire workers.
Health equity
Expanding telemedicine and mental health services is not just an end in itself. It can also drive changes in health equity, making the health care system better reflect inclusive and welcoming values. As one expert recently argued, "The full impact of digital health lies in its ability to both foster inclusion across age, gender, [and] race, and to close gaps in primary health care."
Much work remains to be done, however, especially regarding racial biases in care. Closing the equity gap will require short-term spending, but it may result in long-term savings. That's because as providers address health equities, they may be able to drive down costs. One analysis has estimated that these kinds of disparities amount to approximately $93 billion in excess medical care costs and $42 billion in lost productivity per year.
Adding it all up
If there's one thing that benefits leaders have learned during the pandemic, it's to expect the unexpected. As a consequence, the more that they can proactively manage their offerings, the more in control they can be when circumstances change. These trends may result in health care offerings that lean more heavily into digital modes of delivery, are more focused on mental health, and are more inclusive.
Jennifer Jones, MSM RD, is population health practice Leader at Springbuk and an experienced health care professional with a background in clinical dietetics, wellness programming, and employer health. With over 20 years of experience, she has worked in various settings, including health care systems, occupational health organizations, and health and welfare benefits advisory firms.
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