How one employer saved $1.8M with new benefits and a better experience
At a time when rapidly rising healthcare costs are generating national headlines, one employer found ways to launch creative benefit solutions that not only improved the employee experience but also saved $1.8 million in avoided costs.
The employer’s change in benefit strategy began as a conversation about how they could address escalating costs. In 2023, the average per-employee cost of employer-sponsored health insurance rose by 5.2%. Employers anticipate another sharp increase in 2024. Additionally, according to forecasts by the Center for Medicare and Medicaid Services, national health expenditures are projected to rise by an average of 5.4% annually through 2031.
To combat these rising costs, the employer joined Mercer’s Health Transformation Collaborative –a collective purchasing arrangement that provides access to best-in-class market solutions. In this case, the employer decided to quickly pivot to several new solutions and strategies that have proven to be successful at managing costs and helping members thrive. The programs led to savings from a swift uptick in preventive screenings and primary care visits and a steep decrease in emergency room visits.
Here’s how they transformed their benefits program using the HTC model for pricing discounts, vendor relationship management and a simplified healthcare experience:
One-stop shop for fast access to care
To significantly transform the healthcare journey for members, the team implemented an advocacy and navigation program. Navigators work 1:1 with employees, helping them manage their specific needs across the entire healthcare journey, 24/7. This program has been especially beneficial for members with complex, chronic conditions.
The result? A 15% increase in primary care visits, the first step to ongoing self-care and prevention, as well as better chronic condition management.
Mental health workshops, virtual meditation and behavioral health coaches
A review of the employer’s mental health resources identified opportunities for improvement. Individuals often face challenges when seeking immediate behavioral support. When someone is seeking immediate help, they may give up trying to find an available provider if they can’t find support right away. This frustration occurs often since there is a shortage of behavioral health providers and wait times for an appointment can be incredibly long.
After launching on-demand, 24/7 online support – including online counseling, virtual meditation clinics and mental health workshops – 7.4% of the workforce enrolled in proactive mental health programs.
Condition-specific management: 24-7 virtual clinics to support employees with joint and muscle pain
To address the high prevalence of joint and back issues among employees, this employer implemented a solution to reduce musculoskeletal pain and related treatment costs due to surgeries. Employees now have on-demand access to joint and muscle pain clinics and other clinical support, like health coaches and physical therapists. Additionally, under the supervision of a physical therapist, computer vision technology was implemented to make sure treatment exercises were done correctly.
These solutions resulted in a 63% reduction in employee joint and back pain, as reported by members. In turn, this will lead to lower health plan costs from reduced expensive and often unnecessary surgeries.
Condition-specific management like this initiative is currently a top strategy deployed by health plan sponsors.
Bringing innovation to life, with compassion
Other programs introduced – healthy sleep seminars and a spousal engagement program – are real-world benefit solutions that lean into innovation and deploy creative ways to help employees live their best lives.
For employees, the new benefits address affordability, access to care and demonstrate that their employer cares about them. For the employer, the strategies offer cost-effective programs that promote positive health outcomes. Ultimately, this employer successfully balanced two important priorities – the need to control spiking healthcare costs while maximizing the value of existing healthcare resources.