Sep 11, 2024
Key Strategies to Cut Through Rising Expenses
“2023 was a year of surprises, a panel of consultants at Mercer said during a recent webinar,” noted Susan Rupe, managing editor for InsuranceNewsNet. “But what will 2024 bring to the economy and to health care?”
According to Julius Bendikas, Mercer’s European head of economics and dynamic asset allocation, “While 2023 saw an unexpected economic boom, it's “only natural” for the economy to lose momentum in 2024 after a period of overheating. 2024 is predicted to bring a cooling U.S. economy and further increases in health care costs.”
Here’s the gist of the discussion that would be of interest to health insurance professionals.
2024 Economic and Health Care Forecast
At this point, consumers have largely depleted the extra savings built up during the pandemic, and inflation is expected to level off. However, employers and workers remain concerned about rising health care costs.
Health care costs: Good and bad news
In looking at health care costs for 2024, there is good news and bad news, said Tracy Watts, Mercer national leader for U.S. health policy.
First, the bad news. Mercer does not expect to see much relief on overall medical cost trends. Employers with 50 or more workers saw increases in health plan costs of 5.4% for 2023 and 2024, with costs for 2025 expected to be even higher.
Two drivers of these cost increases are high prescription drug costs and consolidation of health care providers, Watts said.
The good news, she said, is that “there are still plenty of strategies for employers and plan sponsors to use to manage costs.”
She cited strategies such as programs to manage specific health conditions and steering workers to receiving care in a high-performance network.
Health Care Cost Strategies
Focusing on advising clients about targeted programs that manage chronic conditions will serve brokers well. Employees need a variety of personalized benefits. Amwins Connect can help you design attractive packages to address your client’s requirements.
Key strategies include programs tailored to specific health conditions, such as diabetes or hypertension, as well as offering ancillary products that support preventive care like dental and vision. Amwins Connect experts can recommend a cafeteria of options, from top carriers including through our ancillary affiliate, CoPower.
Another strategy is steering employees to high-performance networks which can offer better outcomes at lower costs. Brokers can research and recommend carriers who will help with this cost saving goal.
Staying informed on these options will help you support your clients with valuable guidance as health care costs continue to escalate.
Look to your Amwins Connect Regional Sales Representative, your collaborative partner, for cost saving solutions.
Resource:
