Employers are familiar with the rising costs of providing health benefits to employees, but many aren’t sure how to reduce employer healthcare costs for themselves.
Just how high has the average cost of employer-sponsored health insurance become? According to Mercer’s recent survey of 1,745 American health plan sponsors, employer costs increased an average of 6.3% from 2020 to 2021. Though 2022 costs are expected to increase at a slightly lower rate of 4.4%, they’re still significant.
For companies trying to offer robust benefits packages to their employees, these numbers are concerning. After all, direct and indirect labor costs — including benefits — are typically the biggest expenses organizations face. In fact, a U.S. Bureau of Labor Statistics breakdown of the average costs of employee compensation indicates that benefits account for 30%.
Nevertheless, many employers feel like their hands are tied — and many don’t have the time to spend looking for solutions. As a Paycor study shows, most executives can spare only 15% of their time on managing labor costs. For this reason, they accept the options they’re shown and either revert to providing one-size-fits-all plans or shifting more costs to workers. But this often serves only as a temporary fix because workers begin demanding comparable compensation increases to make up the difference.
At MORE Health, we’re committed to reducing healthcare costs by thinking about treatment differently. That’s why we match patients with leading specialists who can work with their treating doctors to develop a more comprehensive and collaborative diagnosis. We believe our model produces optimum treatment and less chance of misdiagnosis or overtreatment.
How MORE Health Is Innovating to Reduce Employer Healthcare Costs
Misdiagnosis occurs in 20% of serious medical cases and, per a Johns Hopkins Study, results in $2 billion in malpractice claims yearly. These costs are passed along to payers, including employers. However, employers face other business costs associated with inadequate treatment, too. Take productivity loss, for example. For every 10,000 workers an employer has, it can expect to lose $3.8 million annually in reduced productivity related to medical problems.
But there is hope. MORE Health offers affordable benefits for employers by utilizing the latest medical technologies and tools to temper rising healthcare costs. Below are some of the ways we’re innovating in healthcare to reduce the financial effects of misdiagnosis and help employees get and stay well.
1. Creating a user-friendly digital space for streamlined medical second opinion events.
The advanced MORE Health Physician Collaboration Platform™ offers a place for secure medical second opinions via GDPR- and HIPAA-compliant videoconferencing tools. Doctors can review cases in a more collaborative, engaging setting that removes time, location, and communication barriers. The platform provides translation services for 129 languages, enabling physicians and specialists to combine their knowledge and help patients seamlessly.
2. Making essential information and assets available in a centralized database.
Delays in medicine often come from the traditional practice of faxing or emailing items between providers. These collateral pieces of information can easily become lost or get overlooked, making them difficult to find later when they’re needed. Our platform serves as a one-stop clinical database that houses all patient records, results, and images. Retrieval is then simplified, accelerating the diagnosis and treatment process.
3. Adding another dimension to employers’ healthcare benefits packages.
Many companies find that our Co-Diagnosis® benefit becomes a defining differentiator when trying to attract and retain employees. The benefit gives workers virtual access to world-class medical specialists from around the globe with no added out-of-pocket costs. As a result, they stress less about the probability of misdiagnosis and feel more supported by their employers. From a financial standpoint, companies appreciate that the Co-Diagnosis® benefit helps control medical costs, integrates with existing healthcare plans, and reduces unnecessary invasive, expensive events like surgeries.
There isn’t one singular way to stop healthcare costs from continuing to rise. But MORE Health is harnessing innovative medical technologies to bring fresh, creative solutions to the table for employers and workers. If your company would like to learn more about our unique platform and benefit options, contact the team today.