Employers in the U.S. expect medical plan costs per employee to rise by 5.4% in 2023. The impact of rising healthcare prices on plan costs has yet to fully materialize, as health plans typically have long-term agreements with healthcare providers. The effects of these price increases will gradually be seen in plan costs over the next several years as contracts are renewed and providers negotiate higher reimbursement rates.

Despite rising costs, most employers are not planning to raise deductibles or copays. Before the pandemic, most companies employed cost-management strategies for healthcare, but this year enhancing benefits was cited as important by 84% of employees. This year, 11% of large employers plan to offer employees free coverage in at least one medical plan.

So how can employers keep more money in employees' paychecks while also removing cost barriers when care is needed?  

1. Cost Transparency: Employers are currently recognizing the importance of both total cost transparency and holding providers accountable in order to reduce benefits expenses. Next-generation plan design includes incentives that prompt employees to select in-network providers that offer high-quality and cost-effective services. By using transparency tools to inform employees about healthcare expenses, employers can control costs.
2. Telehealth: Employers have also begun using outpatient care including telehealth and urgent care providers as a cost-saving alternative to emergency rooms. 36% of employers cited "cost containment" as a primary driver for offering telemedicine, and 50% of employers have recently introduced virtual solutions in mental health and primary care.
3. Benefits Navigators: Another way to support employees in becoming better healthcare consumers is by encouraging them to understand their health benefits. Employees often don't have sufficient information to make decisions that consider both care quality and cost. Therefore, employers have begun offering benefit navigators who can help ensure a provider is in-network or advise employees if there is a lower-cost alternative. Some also assist in reviewing treatment bills for accuracy and negotiating high-cost bills. Benefits navigation can be offered in several forms. For example, 36% of very large employers offer telephonic services, and 17% offer digital tools. These services are proven to help facilitate care and lower overall costs by 17%.