The Business Group on Health says cost increases will drive companies to try new strategies to control costs, including some considered too disruptive previously.
Large employers are looking at higher healthcare costs in the coming year, and they will face growing pressure to consider new strategies to control costs.
The Business Group on Health, a trade group which represents large employers on health policy issues, said those higher costs top their trends to watch in the coming year. The organization released a report outlining its 2025 projections earlier this week.
Businesses are facing healthcare cost increases that are expected to be the highest in a decade, and that’s going to drive companies to take a closer look at how much they’re spending and what they’re getting, the report suggests.
Moreover, businesses may consider options previously deemed too disruptive to manage costs more effectively and get more value from their health benefit plans. Businesses also are expected to ask tougher questions of vendors and may consider other options in hopes of seeing better value.
Ellen Kelsay, president and CEO of Business Group on Health, suggests companies are going to apply more scrutiny to their health benefits.
“As employers head into the new year, they face formidable challenges stemming from climbing health care costs, which are putting pressure on how employers manage their overall health and well-being programs,” Kelsay said in a statement.
The report suggests the higher costs are partly driven by conditions such as cancer, heart disease, autoimmune diseases and mental health.
Employers may be facing a “tipping point” in the next year when it comes to higher costs, and that may prompt businesses to take other approaches.
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