U.S. employers target healthcare costs and mental healthcare as they look toward 2024

Employers are aligned on priorities over the next three years, even as they face complex needs, WTW survey finds

ARLINGTON, Va., Oct. 20, 2023 (GLOBE NEWSWIRE) -- More than six out of 10 U.S. employers are in agreement about plans to manage company healthcare costs and enhance mental health programs. With these matters top of mind for the foreseeable future, 62% of employers are implementing initiatives to address both, balancing cost and talent considerations as they set a “go-forward” health and wellbeing strategy, according to a new survey by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.

The 2023 Best Practices in Healthcare Survey found more than two-thirds of U.S. employers (69%) are focused on managing healthcare plan costs. This follows a projected cost increase next year of 6.4%, compared with the average 6.0% increase employers are experiencing this year. Almost as many employers (63%) are focused on enhancing mental health and emotional wellbeing programs. Other priorities include employee experience (40%); communication (38%); diversity, equity and inclusion (37%); and employee affordability (34%).

“As companies face steep healthcare cost increases, they are not losing sight of the importance of addressing employees’ needs,” said Courtney Stubblefield, managing director, Health & Benefits, WTW. “However, it’s not a simple challenge for employers to navigate. Each employer needs to find the unique portfolio of programs and solutions that will best control its costs while meeting the healthcare and specific needs of its organization.”

According to the survey, employers are increasingly taking action to manage costs and enhance affordability through health plan and vendor efficiencies. While 37% of employers are currently implementing programs or using vendors that will reduce costs, 50% are planning or considering doing so in the next two years. And while less than one-third (32%) put vendor/health plans out to bid, 47% are planning or considering doing so.

For controlling costs at the point of care, nearly one-quarter of employers (24%) are planning or considering offering a narrow network of higher-quality and/or lower-cost providers in the next two years, while 19% are planning or considering using centers of excellence within health plans. Other actions include carving out specialty pharmacy services (16%) and offering plan options that restrict or eliminate out-of-network coverage for non-emergency services (13%).