How employers can combat rising health care costs

January 31, 2024

A guide to ensuring your employees get the highest quality healthcare

How Employers Can Combat Rising Healthcare Costs

As healthcare costs continue to rise, employers are seeking innovative solutions to ensure that their employees have access to high-quality care while also controlling spend.  

Employers today possess a powerful opportunity to shape the future of healthcare for the millions of Americans holding employer-sponsored insurance. Given the persistent variability in care quality, employers can play a crucial role in creating a plan design system that consistently steers employees to high-quality care.

Lead with Transparency and Incentives

Leading Fortune 500 companies have taken proactive steps to promote quality care by partnering with organizations to create an optimized provider network for their associates. This solution identifies local doctors who consistently deliver high-quality care, enabling employees to make informed decisions about their healthcare providers.  

By providing transparency and incentives for employees to choose high-quality providers, employers can not only improve the quality of care, but also potentially lower health care costs. Other leading organizations have engaged with healthcare providers to share data and collaborate on driving improvement in key clinical areas. Working directly with physicians can lead to better outcomes and more effective use of resources.

Strategic Provider Selection

Many Fortune 500 employers are leveraging provider-level quality data to drive improvements in the healthcare system. By partnering with providers who consistently deliver high-quality care, employers can create value for both them and their employees.

The best way employers can influence health care quality is by making strategic decisions about preferred providers. Leading employers have seen improvement in the overall quality of primary care and specialty providers with an approach that prioritizes quality transparency. This approach encourages employers to opt for providers who demonstrate accurate diagnoses, recommend suitable treatments, and report better patient outcomes.

Collaboration and Partnerships

Employers can also combat rising healthcare costs by forming partnerships and collaborations with healthcare organizations. Some organizations are working to prioritize quality of care through accountable care models. By collaborating with physician groups and even individual doctors, employers can leverage their expertise and resources to drive quality improvements and cost savings. These partnerships can involve sharing data, implementing care management strategies, and coordinating care across different providers. By working together, employers and healthcare organizations can address the underlying factors driving rising health care costs and implement innovative solutions that benefit both the employer and the employees.

Employee Education and Engagement

To combat rising costs, employers can educate and engage their employees about their own healthcare. This can involve providing robust health and wellness programs, offering incentives for preventive care, and promoting healthy lifestyle choices. By empowering employees with knowledge and resources, employers can help them make informed decisions and take proactive steps to prevent costly health conditions.  

Employee engagement can also be increased through the use of digital tools and platforms that provide easy access to healthcare information, allow for virtual consultations, and promote timely communication between employees and healthcare providers. Overall, by investing in employee education and engagement, employers can empower their workforce to actively manage their health, reduce spend, and ultimately improve quality of care.

To learn more about ways your organization can ensure high quality care for your employees, download the ebook “The Path to Higher Quality + Affordable Care” here.