Health benefits trends: New solutions for employers

With the new year upon us, health benefits that deliver true return on investment are top of mind for employers who face rising costs and increasing pressure to offer competitive yet affordable health benefits that go beyond just the safety net of traditional insurance.

Employees want to feel and see the true value of their health benefits plan in action. They’re seeking solutions that provide tangible benefits that meet their individual needs and are easy to understand and navigate. Here are five trends to watch in 2024 to bring more member-centric plans to your employer clients:

1. Smarter plan design to help people manage their health. Millennials are outpacing other generations in their usage of the health care system to manage conditions. Nationwide, there has been a push for clinical strategies that focus on intervening early by incentivizing primary care and driving care coordination. Designing benefits that encourage people to get routine care, catch new diagnoses early and properly manage chronic conditions is a critical first step.

Smart benefit designs can remove barriers for workers to get the care they need while helping manage costs at the same time. Benefits don’t stop with the plan design and should also extend to the support members get when they need to seek care. Data and predictive analytics can help members take action early and bring effective resources and support to those managing complex conditions.

2. Employee fatigue from point solutions and wellness programs. The pandemic put pressure on employers to better care for employees’ holistic health, resulting in a deluge of new wellness programs and point solutions. Some have been game-changers and provide meaningful benefits, whereas other digital health companies have struggled to deliver on their promise.

Although access to wellness programs is still important, research shows many are ineffective at reducing health plan costs. The greatest impact comes from tailored point solutions that are seamlessly integrated into a comprehensive health plan in a way that removes barriers to care – both virtually (e.g. free virtual physical therapy) and in-person (e.g. free mental health coverage).

3. Health benefits embracing consumer-centric ideas from other industries. Often viewed as a bureaucratic and complicated industry, the health care space has seen more benefits innovators drive change by adopting practices from industries fueled by consumer spending. For example, there’s a push for more bill transparency along with interest-free, pay-over-time options to cover medical As medical debt continues to impose a heavy burden on the health care industry, some benefits companies are starting to offer payment solutions that are integrated into health plans.

4. Greater focus on pharmacy coverage. Prescription drug prices, especially for specialty medications, continue to rise. Research has found one in four adults taking prescriptions have trouble affording them, making drug adherence more difficult. The problem escalates as new drugs are released to the market every year. Therefore, both health benefits companies and employers can do more to offset prescription costs for members and employees. Covering generic drugs at no cost, while working with pharmacy partners to increase access to specialty medications at affordable prices, are critical steps to combating this trend.
5. ICHRAs growing in popularity. Individual coverage healthcare reimbursement arrangements have tripled in popularity over the last few years. They can be an ideal fit for employers with populations that include seasonal, part-time or geographically dispersed employees. They’re also a great alternative for employers who need a more flexible way to contribute to their employees’ health benefits. Our recent survey found 89% of benefits decision-makers are likely to consider health benefits through ICHRAs for their employees in the next three years, and 87%  think ICHRAs could be a long-term fit for their company.

Employers continue to seek forward-thinking health benefits companies that are committed to innovation, investing in digital solutions and finding new ways to level up the member experience. When brokers guide employers to the right benefits partner, employees can stay healthier. And when that happens, everyone wins.

Ben Simmons is the chief health plan officer at Gravie. Contact him at [email protected].

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