The benefits landscape is constantly evolving. In our penultimate article on the considerations for plan administrators in 2015, we examine the ways organizations are tackling rising costs.
According to an annual survey by the National Business Group on Health, health care benefit costs at large businesses are projected to increase an average of 6.5% in 2015. Based on the National Business Group on Health’s annual survey, employers are venturing into uncharted areas to try save on these rising healthcare costs.
1. Consumer Engagement Tools
To encourage employees to be better healthcare consumers, 73% of companies are planning on adding or expanding tools available to employees. For example, 71% of large employers are planning on implementing price transparency tools to help employees select health care providers based on quality ratings and cost as well as online decision support tools to help employees estimate costs and compare plans.
2. Reduce Spousal Coverage
Many organizations are planning on reducing spousal subsidies or implementing spousal surcharges. In 2015, 29% of the survey’s respondents are planning on placing a surcharge for spouses who are able to obtain health care coverage through their own individual employer. Another 3% will require spouses to purchase their own health insurance through their employer when it is offered. At the same time, 3% are planning on excluding spousal coverage when their employer offers similar health care insurance.
3. Specialty Pharmacy Benefits
In 2015, the majority of the employers (74%) participating in the survey will require step therapy to curtail the costs of specialty pharmacy benefits. This includes first trying less-expensive medications to effectively manage the employee’s problem or medical illness. Only after these more cost-sensitive measures have been exhausted will high-cost specialty medications be authorized.
Also on the rise are utilization management programs with 72% of employers expecting to participate. At the same time, 33% of businesses are expecting to use freestanding specialty pharmacies to cover these types of prescriptions, while 29% are projected to approve coverage for prescriptions on a 30-day initial supply to ensure the medication is effective.
4. Weight Management
In efforts to attain a healthier and more productive workforce, 73% of respondents are expecting to cover surgical interventions for treating severe obesity, while 41% are expecting to cover FDA-approved medications. Both of these are increases over 2014.
Managing the rising cost of health care benefits is a major concern. Whether you use any of the previously mentioned methods or find other ways, it’s important to use strategic methods to curtail the rising cost of health care benefits in 2015.
Alan Wang is the President of UBF and serves as the lead consultant. He has delivered the UBF solution set throughout the world and is highly regarded for his areas of expertise. You can follow him on Twitter @UBFconsulting.