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Be Bold. Lower Costs.
As healthcare costs climb, employers are being pushed to act faster and think differently. Ellen Kelsay, President and CEO of Business Group on Health, explains why benefits leaders can no longer rely on traditional models alone. From prevention and primary care to stronger vendor management and transparent partnerships, she shares how employers can take bold steps to lower costs while improving care and outcomes for their workforce. Now you know.
3 things employers need to know to lower healthcare costs
Healthcare costs are rising fast. Employer healthcare trend is at an all-time high, and benefits leaders no longer have the luxury of waiting. The status quo will only make cost pressures harder to manage.
Bold action can start with the basics. Prevention, primary care, annual physicals, and cancer screenings are practical ways employers can help people get the right care earlier while reducing avoidable costs.
Better partners can drive better outcomes. Employers should take a harder look at their vendor ecosystem, including health plan and PBM models. Transparent pricing, proactive management, and long-term partnerships can help lower costs and improve care.
Take action: Start by strengthening prevention, primary care, and screening programs across your workforce. Then evaluate whether your health plan, PBM, and vendor partners are delivering the transparency, quality, pricing, and long-term value needed to meet today’s healthcare cost challenge.
Ellen Kelsay: I’m Ellen Kelsay, and I know three ways employers can lower costs. And now, you know too.
Ellen Kelsay: The current state of healthcare facing employers is quite daunting. Our survey data is showing that healthcare trend is at 9%, which is an all-time high. And when you look back over the past decade, it’s a 62% compounded increase in trend over that timeframe.
Ellen Kelsay: We are at a point in time where we really do not have the luxury of time as these healthcare cost trends continue to rise. Benefit leaders can look at a number of different things in terms of bold redesign and what bold might mean for their organizations.
Ellen Kelsay: Bold could mean moving to an alternative health plan. Bold could mean moving to a transparent PBM. Bold could mean disrupting, and disrupting does not have to be negative.
Ellen Kelsay: There are certainly many things that employers can do to mitigate the rising healthcare trend. First, I would say it is back to the basics and a big focus on prevention, primary care, annual physicals, and getting cancer screenings done.
Ellen Kelsay: Second, I would say taking a hard look at your vendor ecosystem and how they are performing. Management of your vendors on a much more proactive basis can result in some savings and improved care and outcomes for your workforce.
Ellen Kelsay: And then lastly, I would say there are a number of newer models that exist. We are seeing many employers seriously consider alternatives to the traditional players as they look to address this healthcare cost, whether it be new health plan models or new PBM models that are transparent and have lower pricing.
Ellen Kelsay: When employers think about partners and vendor partnerships, there are so many different qualities that really matter. And Transcarent, as we have heard from all the capabilities that exist and that they are building, is a wonderful option for employers to consider.
Ellen Kelsay: They are focused on quality, they are focused on transparency, and they are focused on partnerships for the long term.
