Employee benefits come in many forms, but health care support is perhaps one of the most important support systems employers can offer. To top it off, in the coming year, proactive care as an employee benefit may just be the solution to the concerns surrounding the likely increase in costs in relation to health care.
Health care expenses are projected to consume 20.3% of the US GDP by 2033, according to the Centers for Medicare & Medicaid Services (CMS). This rise has employers concerned about whether they can consistently provide such benefits to employees.
Offering employers an opportunity to consider an alternative, Deloitte’s report on proactive care suggests that investments in detection and prevention could ultimately reduce the spending on health care for everyone involved.
Proactive care as an employee benefit could be the ultimate answer to address the rising costs of health care. (Image: Pexels)
Proactive Care as an Employee Benefit Could Be the Solution to Employer Woes
Deloitte recently published a new report on safeguarding Medicare, and while its findings weren’t exclusive to employers, it did make a clear case for health care prevention as a way to preserve the future of citizens in the US. The report shone a light on the advantages of early prevention of health concerns, marking it as a benefit not just for the citizens themselves, but for the US support system as well.
To put matters into perspective, the report painted a stark picture of the US healthcare landscape, indicating that Medicare spending alone hit $848 billion in 2023, covering 67 million beneficiaries. It is further expected to balloon to $1.8 trillion by 2031 as enrollments top 80 million. Without intervention, per-person care costs could reach $23,000 by 2024. Employers that provide health insurance and health care benefits can similarly expect their expenses to go up. While the data sounds bleak, not all hope is lost.
The Deloitte report on proactive care explained that “Investments in prevention, early detection, behavioral change, and other proactive measures could reduce overall health spending (medical and prescription drugs) by 28% in aggregate compared with current CMS projections.” Deloitte’s analysis revealed that proactive measures could save the system up to $2.2 trillion annually by 2040, which adds up to more than $7,000 per person.
A Multi-Stakeholder Effort is the Best Way to Approach Health Care
The Deloitte report on proactive care is an insightful document into the current state of affairs, but it also doubles as encouragement for a “collaborative multi-stakeholder” initiative that takes health care systems, health plans, employers, and the federal government into account. Collaboratively, much can be done to ease the burden of individual responsibility by exploring alternatives where a joint effort is made that benefits everyone.
Employers have an important role to play in breaking down health plans that offer incentives for wellness. Subsidized screenings, personalized coaching for diabetes management, and proactive mental health care solutions within the workplace are just some of the ways that employers can engage in purpose-driven initiatives that keep employees at the top of their game.
Building Employee Engagement Through Proactive Support
It is also true that proactive health care and employer ROI go hand in hand. Employees are more likely to commit fully to organizations that keep their health care in mind. Building engagement through proactive support is recommended for any business that aims to retain its workforce, and the benefits don’t end there.
Healthier employees make more productive employees. Workers who can come into work feeling their best can work better and give back to the organization with greater vigor. Absenteeism and burnout can be expected to rise when employees’ health care needs are not met, lending credence to the adage that health comes first.
This forward-thinking approach to proactive care via employee benefits isn’t just fiscally smart, but also a commitment to the human potential that we witness within any workforce.
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