Gastrointestinal (GI) conditions are rapidly emerging as a major cost driver in employer-sponsored health care. Conditions such as inflammatory bowel disease (IBD), inflammation of esophagus, and hernias are more than just data points on a claims report—they are daily struggles for employees facing chronic pain, unpredictable flare-ups, and the mental health challenges that often accompany them.
GI diseases now rank among the top three highest-cost conditions, accounting for a significant portion of employer health care spending. Over the past three years, GI-related health care costs have surged primarily due to rising specialty drug prices and surgical procedures. Prescription drug spending alone has increased 31.7%, outpacing overall medical cost growth.
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Employers who act now can take meaningful steps to manage these costs while improving employee health outcomes. This article explores the financial impact of GI conditions, their often-overlooked link to mental health, and actionable strategies employers can implement to control expenses and enhance employee wellbeing.
The growing burden of GI costs: More than just numbers
GI-related costs have risen 19.6% in three years, and are now the third highest cost condition after Cancer and Diabetes. Several factors contribute to this surge:
- Rising surgical procedure costs
- High cost specialty medications
- New indications for specialty medications
- Stress sensitive flare-ups
The mental health connection: A hidden cost multiplier
The connection between mental health and GI conditions is undeniable. Employees with anxiety and depression are significantly more likely to experience GI disorders. Further analysis reveals that employees with a mental health diagnosis are 2.3 times more likely to have any GI condition and 3.6 times more likely to suffer from IBS.
Stress and psychological distress exacerbate GI symptoms, leading to higher health care utilization, increased pharmacy spending, and lost workplace productivity. Without intervention, this cycle continues to drive up costs while diminishing employee engagement and satisfaction.
Employers have the power to change the trajectory
HR, benefits leaders, and consultants are uniquely positioned to disrupt this costly and painful cycle. By integrating GI and mental health support, ensuring responsible use of specialty drugs, and prioritizing preventive care, employers can reduce expenses while improving employee wellbeing.
1. Integrate mental health and GI care
- Embed behavioral health support into GI treatment plans to address the gut-brain connection
- Offer access to cognitive behavioral therapy (CBT) and stress-management programs to help employees manage symptoms
- Provide digital mental health platforms and Employee Assistance Programs (EAPs) for accessible, ongoing support
2. Ensure responsible use of high-cost GI medications
- Partner with pharmacy benefit managers (PBMs) to implement prior authorization and step therapy protocols
- Educate employees on lifestyle interventions—such as dietary changes and stress management—that may reduce reliance on expensive medications
- Promote biosimilars as cost-saving alternatives, with upcoming options for GI specialty drugs expected to lower costs
3. Invest in preventive care to reduce long-term costs
- Promote early screenings for GI conditions to detect and address issues before they escalate
- Offer personalized nutrition counseling and gut-health education to help employees proactively manage their conditions
- Provide coverage for non-invasive treatments and holistic therapies that may reduce the need for surgery or long-term medication use
A call to action: The time to act is now
As GI conditions consume an increasing share of health care costs, employers must take proactive steps to manage expenses and support employee health. Every costly specialty drug claim, every missed workday due to a flare-up, and every employee struggling in silence represents an opportunity for intervention.
HR leaders—and the consultants and partners who advise them—must evaluate their benefits strategies, engage with health care experts, and implement targeted policies to address this growing challenge. The choices made today will impact both the financial sustainability of employer-sponsored health care and the long-term wellbeing of employees.
GI conditions aren’t just a budget line item—they affect real people, in real pain, who need real solutions. This isn’t a wait-and-see moment. Smart, data-driven action must start now to prevent higher costs and deeper human impact.
For the last 20 years, Chris Gagen has worked with benefits leaders and clients analyzing their health care claims data with a focus on financial and plan design modeling. He’s gathered experience across collaborations with business leaders, product managers, data scientists, and software engineers to define and solve health care business problems. Since joining Springbuk in 2019, Chris has served in various roles throughout the organization. In his current role as Senior Director of Solutions Management, he leads the Analytics and Strategic Consulting team, driving impactful, data-driven strategies for clients.
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