Morgan Health’s Post

If you are looking to understand the most important trends playing out across the U.S. Health Economy, there is no better thinker today on those forces of change than Dr. Sanjula Jain. She is out this week with the fourth edition of her Health Economy Trends Report. It is an annual must read. Dr Jain details eight macro trends that should be top-of-mind for every health care leader. The current system is disproportionately expensive (While demand has been relatively flat, total spend has grown from $2.8 trillion in 2012 to $4.5 trillion in 2022). The U.S. Health Economy is, Jain demonstrates, insufficiently focused on health. And importantly for commercial insurance, employees rank "affordability" (89% of respondents) as the most highly valued benefit feature and "employers are better equipped [than ever] to demand value for money." In Spring 2022, Dr Jain and I published The New Health Economy: Ground Rules for Leaders (Georgetown University Press) along with our dear friend Dr Gary Bisbee. We argued then that "the crisis of affordability would define the decade in U.S. healthcare." It is one of Sanjula's insights you can see playing out. This latest report from Dr Jain brings important new thinking to a much needed national dialogue on rising costs and declining affordability. It is worth the time of every leader (and their teams) looking to deliver value for money to their customers. #healtheconomytrendsreport #drsanjulajain #affordability #valueformoney #thenewhealtheconomy #georgetownuniversitypress

💰 Health spending now takes up 10% of the global economy. With rising costs not translating to better health outcomes, it's clear we need a change. Digital innovations are cutting costs and improving lives. It's time to harness technology to make healthcare more efficient and accessible for all. https://bit.ly/3yAo3Qw Via World Economic Forum #healthcosts #digitalhealth

A recent analysis by JPMorganChase highlights the pressing challenges small and mid-sized businesses face in navigating health plan funding options. With healthcare costs projected to rise by 7.6% or more this year and continue increasing in the foreseeable future, it’s crucial for employers to rethink their strategies. Key Insights 💡 Disproportionate Impact on Small-Mid Employers: Small and mid-sized businesses often bear the brunt of rising costs, with many relying on fully insured plans—typically the most expensive option. This leaves them vulnerable to unexpected high-cost claims. The Value Imperative: As costs escalate, employers must prioritize finding health plan funding options that deliver the best value. It’s not just about cost; it’s about providing quality coverage that meets employee needs while managing financial risk. Looking Ahead to 2025: The landscape is evolving, with innovative options like Individual Coverage Health Reimbursement Arrangements (ICHRAs) and level-funded plans gaining traction. These alternatives can offer more flexibility and potential savings. Maximizing This Year's Benefits: With the anticipated 7.6% increase, now is the time for employers to review their current funding strategies. Exploring options like Professional Employer Organizations (PEOs) or group captives may lead to significant cost reductions. Strategic Decision-Making: Employers should engage with brokers and conduct thorough research to understand the risks and benefits of various funding options. This proactive approach can help mitigate the impact of rising costs and enhance employee satisfaction. As we move forward in this evolving landscape, it’s essential for employers to stay informed and adaptable. By leveraging innovative funding strategies, businesses can better manage costs while providing valuable health benefits to their employees. #EmployeeBenefits #HealthcareCosts #HRStrategy #SmallBusiness

💰 Health spending now takes up 10% of the global economy. With rising costs not translating to better health outcomes, it's clear we need a change. Digital innovations are cutting costs and improving lives. It's time to harness technology to make healthcare more efficient and accessible for all. https://bit.ly/3yAo3Qw Via World Economic Forum #healthcosts #digitalhealth #healthtech

What could you do with your business if you could save $40k+ each year on the health coverage you provide to your employees? I recently ran some health coverage quotes for a small group in Central OR with 18 employees. The traditional health plans came back with a price range of a little over $10k per month for a $9,400 deductible plan to over $15k per month for a plan with a $1k deductible. That’s $120k to $180k per year for just health benefits (with employees having to pick up $71k to $100k+ of that total cost.) I also put together rates for a medical cost-sharing plan with a health reimbursement program tacked on. The annual cost for this option was just a hair over $81k. This option provided the employees with arguably better benefits at a fraction of the price. And the employees wouldn’t have to pick up anything. If you own a business, you owe it to your employees, and your bottom line, to look at this innovative solution and finally get a handle on your health benefit expenses. All it takes is a quick call with me to learn how you can save your business a ton of money—while giving employees health coverage they’ll actually use.

Trilliant Health just released its 2024 Health Economy Trends Report, offering a fresh look at the healthcare market based on supply and demand. One key takeaway for behavioral health: Over 14% of patients with commercial insurance go out-of-network for behavioral health services, compared to just 2% for physical care (Page 111). The report highlights that U.S. healthcare costs far exceed the value patients receive. Link to full report: https://lnkd.in/gQWuQE63

𝗗𝗲𝗮𝗿 𝗖𝗘𝗢: 𝗪𝗮𝗻𝘁 𝗮 𝗕𝗲𝘁𝘁𝗲𝗿 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗛𝗲𝗮𝗹𝘁𝗵 𝗣𝗹𝗮𝗻? Here's an idea... rewire the incentives. Who currently makes more $ when your health plan costs rise? Your benefits broker Your insurance carrier Your claims administrator Your pharmacy benefit manager Who's financially indifferent when your health plan costs rise? Your internal benefits decision makers (HR, benefits leader, CFO, etc.) Want lower health plan costs? Create a financial incentive for your internal decision makers and challenge them to go get it. For every $ in savings, you'll give them X%. Make it meaningful. What have you got to lose? And how do you guard against reduced quality in the health plan? Poll your health plan members to set a baseline. I'd use Net Promoter Score (look it up). To be eligible for the bonus, your health plan leaders must maintain or improve the NPS (or whatever quality score/tool you're using). Put this in place and watch what happens. I'll bet you won't ever see another double-digit cost increase again. And your benefit plan will become the recruiting and retention tool it was always meant to be.

This is really weird - what are the other 42% of global insurers thinking! Of course employee benefits costs are going to go up. We have an ageing and less healthy population, we are accessing a broader range of health services, and the cost of everything is going up, particularly drugs. Not sure what event would ever drive a decline in employee benefits costs. At the end of the day, we need to help plan sponsors plan for this inflation, so that is why we provide our annual inflation projection to all our clients. - have a look and see what you think. https://lnkd.in/gd7yBUt7 #employeebenefits #benefits #groupbenefits #betterbenefits

Benefits are expensive, there's no way to sugarcoat it. In tight markets, where getting the right talent on board and getting them to stay on board can be the difference between success and failure, maybe it's time to rethink of them as an investment, or maybe a down payment, rather than pure cost. Organizations that see it that way, and (genuinely) act accordingly, may find that's the roadmap of going from good to great. And we know good is the enemy of great. The downside to not acting can negatively impact the situation in several ways - your best people leave for greener pastures, poor health outcomes if insurance and health costs are too burdensome, stress around future money needs - just protecting against these downsides alone should be a motivator to rethink their offerings and general approach. At the same time, companies need to be careful not to throw good money after bad, to find ways to maximize that return on their investment. This report from Mercer offers a thoughtful framework for these decisions and conversations including: * Design plans for value, according to what the population actually wants and needs. * Utilize data to focus on preventative measures that keeps health a focus up front (ounce of prevention=pound of cure * Be efficient with carriers, vendors, and all stakeholders to avoid unnecessary costs and keep things simple and streamlined. How do you view the benefits your offer or are offered? Would love to start this conversation here, thanks https://lnkd.in/e79bYVP7

Health spending takes up 10% of the global economy, reaching $9.8 trillion in 2021. Despite this, life expectancy has stagnated. How can tech help reduce costs and improve lives? Increasing healthcare costs strain households, governments, insurers and providers. Yet, the money spent isn’t translating into better health outcomes. Change is imperative and tech could be the key: → Engage people in preventative care → Automate routine processes → Move to value-based care models Examples of developed solutions written in the latest article of the @World Economic Forum show tech’s potential to transform healthcare, lowering costs and improving outcomes. Learn more about embracing innovation for a healthier future: https://lnkd.in/du7m--Cf #HealthTech #InnovationInHealth