A Call-to-Action for the New Year. Push for Healthcare Costs to Go Down 20%.
It is a time for new beginnings, fresh starts, and new approaches to solving persistent problems. Our Chief Financial Officer Stephanie Peng has a call-to-action for benefit leaders, CFOs, and CHROs to demand better in 2024.
January 5, 2024
Stephanie Peng, Chief Financial Officer, Transcarent
It is a time for new beginnings, fresh starts, and new approaches to solving persistent problems. At Transcarent, we’re embarking on the new year with excitement and anticipation for what’s to come as health and care evolves to a much “healthier” status quo, and we are excited to invite all of you to join us. I’m issuing a call-to-action to benefit leaders, CFOs, and CHROs to demand better in 2024.
As the finance steward of the company, I understand how CFOs are continuously challenged to improve shareholder value. It is well-documented that healthcare costs in the United States are expected to double by 2031, reaching $7 trillion.1 Analysts have warned that employers may see 2-3X EBITDA erosion from rising benefit costs and that some employers believe premium increases are unsustainable. Employers will bear a great deal of this cost – but we are also the ones with the greatest power to demand and drive the positive change.
Resigning ourselves to accept and maintain the status quo is the highest risk choice. Annual cost increases shouldn’t be the forgone conclusion. And more expensive certainly doesn’t equate to better. It's time for us, as financial and benefit leaders, to accelerate change and demand savings from healthcare partners. Set the expectation that costs must go down in 2024, and not just a little, but at least 20%. If you don’t ask for it - you won’t get it. Encourage your benefits and finance teams to not just imagine different, but to demand different.
At Transcarent we are living this call-to-action with our employer clients who have opted-in to transform the status quo of healthcare. We are on a mission to make it easy for employees and their families to access high-quality, affordable health and care - and we are just getting started.
With innovative plan design, partnerships, and technology we can stop unsustainable spending and reverse healthcare cost trends. Together, we can create meaningful and sustainable change and deliver high-quality care while spending significantly less. Won’t you join us, and be part of this transformation?