Leading the way
Employers remain the cornerstone of the American health system
Today more than 181 million Americans rely on employer-sponsored coverage, and employers absorb the vast majority of the cost of that coverage. Faced with rising costs driven by provider consolidation, opaque pricing incentives that reward volume over value, and chronic conditions, employers are redesigning benefits, using data to target spending, and partnering with providers to improve outcomes while seeking to hold down costs.
The case studies described in this report from Marsh and the American Benefits Council show that employers sponsoring health plans are not just cutting a check. They are committing time and energy to improving the health care system, and enriching the lives of their employees and family members.
Participating employers featured in the report:
- Alliance Coal
- Auburn University
- Delta Air Lines
- Dow Inc
- Health Action Council
- Lowe’s Companies Inc
- MedPro Healthcare Staffing
- Microsoft
- National Rural Electric Cooperative Association
- Niagara Bottling
- Organon
- The Alliance
- Walmart Inc.
Affordability
Rising health benefit costs continue to make affordability a top concern for employers.
Three in four CFOs said their organization could not absorb rising health costs without tradeoffs in wages, hiring, or capital investments.
As a result, taking action to reduce cost growth has become imperative for many employers.
These case studies illustrate how employers are approaching affordability in practical, measurable ways:
- Alliance Coal — A fully self-administered health plan produces durable financial and workforce results
- The Alliance — Incentive strategy helps close pricing gaps in clinically similar care
- Auburn University — Integrating clinical pharmacy expertise into benefit management gives greater control over costs
- Dow Inc. — PBM overlay tool leads to lower employee spending on prescription drugs
Access
Helping members get care when and where they need it is becoming a more deliberate employer priority, especially as provider shortages and geographic gaps continue to limit access in some markets.
The following case studies demonstrate how employers are addressing access barriers with targeted, practical solutions:
- Health Action Council — Addressing social determinants of health earlier influences cost and utilization
- National Rural Electric Cooperative Association — Reimagined telehealth strategy meaningfully expands access to care for dispersed workforce
- MedPro Healthcare Staffing — Healthcare staffing firm gets creative to meet needs of geographically diverse workforce
- Niagara Bottling — Telehealth expansion drives rapid and sustained uptake of primary care services
- Organon — Strengthening access to primary care boosts utilization and employee satisfaction
- Walmart Inc. — Targeted design can address unmet needs without adding complexity
Quality
More employers are paying attention to healthcare quality and where employees and covered family members receive care. Higher-quality care — evidence-based treatment delivered in the right setting at the right time — is often less expensive than lower-quality care.
In these case studies, employers are using benefit strategy to steer members toward higher-quality care:
- Microsoft — Data-backed quality framework improves care without shifting costs
- Walmart Inc. — Structured benefit pathways improve quality and outcomes
- Lowe’s Companies Inc. — Centers of excellence program builds on experience to address unnecessary procedures and inconsistent outcomes
Well-being
Employee well-being is receiving greater attention as employers look for ways to support financial, physical, and behavioral health. With covering monthly expenses a top concern for many U.S. employees, employers are expanding financial well-being strategies beyond education and planning tools to address common sources of financial stress more directly.
At the same time, employers are increasing access to behavioral healthcare and broadening mental health support through more flexible care options designed to meet employees where they are.
The case studies below highlight how employers are putting these strategies into practice:
- Delta Air Lines — Behavior-centered approach to financial wellness delivers actionable insights and measurable early returns
- Global manufacturing firm — Phased approach grounded in employee feedback improves financial wellness
- Niagara Bottling — Engagement followed when mental health benefits were designed for continuity and access
Employer innovation: Leading the way
Employer-sponsored coverage is evolving beyond cost control — employers are investing in smarter benefits, better care, and more holistic support to improve affordability, access, quality, and well-being for millions of Americans.
To ensure continued progress policymakers must preserve the policy foundations that enable employer-sponsored coverage and to remove barriers that obstruct employer-led innovations to improve affordability and value.