Empowering Colorado Employers: 4 Strategies to Optimize Health Care Benefits

Health care spending nationwide is expected to exceed $6 trillion by 2030, with employers covering a large percentage of that through medical benefits provided to employees. Unfortunately, one study found that 25% of annual health care spending may be wasteful, including overtreatment, low-value care and fraud.

With that in mind, it is vital for employers to look for ways to help maximize the value of their health benefits and implement programs that encourage access to quality, evidence-based care. This not only allows employers to offer innovative benefit packages that help attract and retain top talent, but also enables strategic cost management.

Here are four recommended approaches Colorado employers can consider to help their employees better navigate the health care system and make the most of their health benefits:

READ: 7 Tips for Choosing Your Health Insurance in 2023

Promote preventative care

According to the United Health Foundation’s America’s Health Rankings report, Colorado ranked 38th in the country for the percentage of people who have a dedicated health care provider. By encouraging access to primary care, Coloradans can be better positioned to prevent, detect, and manage health care conditions, such as type 2 diabetes or high blood pressure. In addition to contributing to improved health outcomes, a recent study found primary care visits reduced annual health care costs by 33% for employees.

Employers can act by seeking innovation in network and plan designs, including options that incorporate Accountable Care Organizations (ACOs) and Centers of Excellence (COEs). These approaches can help deliver quality, cost-effective care, while reducing the risk of complications and lowering hospital length of stay.

Take advantage of telehealth

Nearly 90% of Americans surveyed said they want to continue using virtual care for non-urgent health needs, while 76% of employers grew their virtual care offerings in response to the COVID-19 pandemic. Virtual care, also called telehealth, has expanded from treating urgent care issues, such as allergies, rashes, or seasonal flu, to now providing access to other types of care, including primary, specialty and behavioral.

These resources are especially important for people who live in rural areas, have mobility issues, or lack reliable transportation. Plus, virtual care can be less time-consuming, eliminating the need for people to take time off work, arrange childcare or travel long distances to receive care.

Company and human resources leaders should continue to assess and refine virtual care options currently available to employees through their health plan, local care providers, or other virtual service providers. Leaders can also look to add emerging virtual care resources such as those for physical therapy, dermatology, and women’s health.

READ: Ways to Save on Healthcare for Employers

Reward employees for wellness activities

While most employers offer well-being programs, only 23% of employees use these wellness initiatives. To make these initiatives more appealing and engaging, employers should look for programs that offer incentives for various healthy activities, including filling out a health survey, selecting a primary care physician, getting a biometric screening, meeting certain movement goals or tracking sleeping. Plus, instead of virtual coins or rewards that can only be used to help pay for medical care, employers can look for programs that enable enrollees to earn debit cards worth hundreds of dollars annually — and that can be spent in any way.

Investing in programs that leverage wearable devices and digital fitness apps can also play an important role, providing employees with daily feedback on their activity levels while helping provide access to live or on-demand fitness classes. This is especially true to help address the growing prevalence of type 2 diabetes, which accounts for up to 18% of health care costs for employers.

There is growing interest in programs that use a combination of real-time glucose monitoring, activity trackers and virtual care teams to help people with type 2 diabetes improve control over their condition while offering cost savings for employers.

Add a plan with upfront pricing

Some employers are opting for health plans that do away with deductibles and instead give employees first-dollar coverage, coupled with access to upfront pricing information before they schedule medical appointments. In doing so, these plans can help remove financial barriers to care and encourage people to select quality, high-value health care providers and facilities.

Employers can offer a traditional health plan alongside one of these newer options, with the goal of helping reduce the total cost of care and lower out-of-pocket costs for employees.

One example is Surest ™, which provides all-in cost information for hundreds of common medical services. Equipped with this upfront pricing, Surest is designed to help members more frequently access the right care, at the right time and in the right setting. In fact, a recent study found Surest members experience 6% fewer emergency department visits, 13% fewer inpatient hospital admissions and a 7X increase in virtual care use.

By considering these four strategies, employers can help employees make more informed health and well-being decisions, while helping curtail rising health care costs.

This article is sponsored content.

Marc Neely is the CEO of UnitedHealthcare of Colorado and Wyoming.