Marsh McLennan Agency Urges Action On Soaring Health Costs
Healthcare costs have risen 76% in the last decade, according to Marybeth Gray, and companies must act to manage them. Gray offered tips to help keep costs at bay and employees healthy.
Original reporting · hrdive.com
Original: “3 tips to manage soaring health costs”
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Key points from HR Dive’s report
- Healthcare costs have risen 76% in the last decade, making it a major finance issue.
- Companies should plan early and be open to changing carriers to manage health costs.
- Managing 'high-cost claimants' and taking advantage of medical advances can help reduce health costs.
Marybeth Gray, senior VP of health and welfare benefits consulting with Marsh McLennan Agency, spoke to finance leaders about the need to manage soaring health costs, according to HR Dive.
Gray emphasized that health benefits are no longer just an HR issue, but also a finance issue, citing data from the Business Group on Health showing a 76% increase in healthcare costs over the last decade.
Gray's message was likely familiar to the conference attendees, who have been dealing with rising healthcare costs, described as a 'tapeworm' in the American economy by investor Warren Buffett.
Gray offered three tips to help companies manage health costs: plan early, manage 'high-cost claimants' better, and take advantage of medical advances.
Planning early means starting the process before summer, as June is already considered implementation time, and being open to changing carriers if necessary.
Managing 'high-cost claimants' involves engaging employees with chronic conditions, such as diabetes, and providing them with resources to manage their conditions, rather than just relying on wellness programs.
Taking advantage of medical advances, such as genomic testing and pharmacogenomic testing, can help address major health issues before they become costly.
Questions and answers
Why are healthcare costs rising?
Healthcare costs have risen 76% in the last decade, according to the Business Group on Health.
What can companies do to manage health costs?
Companies can plan early, manage 'high-cost claimants' better, and take advantage of medical advances to manage health costs.
Are wellness programs effective in reducing health costs?
Wellness programs are not likely to move the needle on costs in the long run, according to Marybeth Gray.
