Expect employers to become more picky about who you see for care

An increase in healthcare spending is looming in the new year, and the Business Group on Health is helping employers understand this.

The nonprofit found in a recent survey that large employers expect the cost of treating patients to rise nearly 8% next year before changing coverage to address it. That is the highest growth rate in ten years.

Business Group on Health CEO Ellen Kelsay expects employers will respond by being more selective in the care people receive. They will also try to control the use of expensive treatments for obesity and diabetes.

Kelsay’s nonprofit organization advises employers on health care costs and policy issues. The CEO recently spoke with The Associated Press.

Question: Large employers expect an increase in healthcare costs next year. How will they handle it?

A: They will focus on the quality of service provided to their staff. You may hear of high-quality networks or centers of excellence. These are efforts where employers look for the highest quality service providers and try to encourage their employees to seek services through these providers.

Q: Does this mean employees may see fewer healthcare choices?

A: They will see more curated, designed networks with perhaps fewer providers in them. But they will be of higher quality.

Q: Your annual survey also found that improving access to mental health care is a major priority for large employers. Why do they think this is important?

A: It’s fundamental. A person who is struggling with a problem at work or outside of work will not be as engaged, productive or healthy.

Q: How do employers deal with expensive and popular weight-loss drugs like Wegovy?

A: Most view them as a tool in their overall weight management strategy…not the only tool. (They) will really focus on who is the right population to get these medications. Does a provider recommend this? Does the individual have certain comorbidities? Does the individual have a (body mass index) that meets a certain threshold? And does the individual also participate in a lifestyle and behavior change program to ensure long-term success?

Q: Eight of your 10 business leaders are women. How does that determine the vision or direction?

A: I think we work very well together. We focus on belonging, constructive discourse and encouraging diverse perspectives.

Question: You have been studying employment benefits trends for more than twenty years. What surprised you the most?

A: It’s this sobering continued rise in fundamental health care costs. It’s something we’ve been talking about for decades. There is certainly a lot of good work happening, but it is not enough.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.