Echoing PWC’s finding, WTW’s survey shows that “U.S. employers project their healthcare costs will increase by 7.7% in 2025, compared with 6.9% in 2024 and 6.5% in 2023.” According to WTW’s press release “employers are reaching beyond traditional cost-shifting strategies to improve healthcare affordability and employee health. More than half of employers (52%) plan to implement programs that will reduce total costs, and just as many (51%) intend to adopt plan design and network strategies that steer to lower-cost, higher-quality providers and sites of care. Only 34% expect to shift costs to employees through premium contributions, and just 20% will promote account-based health plans or high-deductible health plans.”
The survey finds that some of these cost-saving initiatives are focused within the prescription drug space, “with strong interest in alternative drug channels and pricing.” “To support affordability and employee wellbeing,” WTW adds, “employers’ top focus areas are obesity and weight management (40%), cancer and oncology (34%), cardiovascular health (28%) and women’s health (27%).”
With respect to obesity and weight management, the survey found many employers continue to struggle with high demand for new weight loss drugs. Most employers continue to cover the drugs; those who do not cite safety and cost as barriers to coverage. Employers “are eager” to find lower cost and effective alternatives to these drugs, and just under half are willing to explore alternative channels to obtain them.
Read WTW’s press release here: https://www.wtwco.com/en-us/news/2024/09/healthcare-costs-at-a-post-pandemic-high-us-employers-prioritize-affordability-and-wellbeing