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Employer-sponsored healthcare

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How to navigate the rising tide of healthcare costs

Sagi Polani

January 11, 2024

3 min

The inflation jumps that consistently made the headlines in 2022 hit the healthcare scene hard in 2023, affecting both employers and employees.

This is what the data from the Kaiser Family Foundation's (KFF) 2023 Employer Health Benefits Survey reveals. 

In this post, we’ll take a look at some key findings of the survey, how they should affect the trajectory of your employer-sponsored health coverage, and how Fijoya can ease the growing burden on your financial and human resources.

Family Plan Premiums Go Through the Roof

Employer-sponsored family plan premiums hit an average of $24,000. This surge is indicative of the complex challenges tied to rising deductibles, medical inflation and provider consolidation. But whatever the cause, it has a singular effect on your bottom line - and not a positive one. 

Staying Competitive Amid Escalating Costs

If you’re like most employers, you’re hesitant about shifting costs to employees. Deductible amounts have not increased at the same rate as premiums, likely due in part to employers’ concerns about the ability of workers to afford higher out-of-pocket costs. 

The tight labor market gives employers yet another reason to look for innovative solutions that provide more coverage for employees: if you don’t, a competitor might. And there goes your talent.

How can you succeed in the ongoing challenge of balancing comprehensive (and diverse) coverage that satisfies employees with healthcare that both employee and employer can reasonably afford? 

Suggestions from the KFF Survey

While the KFF Survey and subsequent report primarily highlight the issues and challenges facing the field of employer-sponsored health and wellness benefits, some solutions can be seen in (or between the lines of) their report.

Centers of Excellence programs

Specialized programs within hospitals or facilities that offer high-quality and cost-efficient care for specific medical conditions or procedures often provide better outcomes and can be part of an insurance network, leading to reduced costs for both employers and employees. Running your specialized medical coverage on a Centers of Excellence model can be a promising strategy for cost control and quality enhancement, especially if made mandatory.

Mental and behavioral health provider availability

While 91% of firms offering health benefits say that there are a sufficient number of primary care providers in the plan’s networks to provide timely access to services for workers and their family members, only 67% of firms that say there are a sufficient number of mental and behavioral health providers in the plan’s network to do this. This may be an area in which to invest in order to differentiate your benefit offering in an area that is critical to employee success and stability.

The importance of short-term cost mitigation

Looking forward, both inflation and employer costs for labor are projected to moderate over the next two years. Just like there was a delay in the time that it took overall rising prices to affect premiums, however, premiums may not reflect these underlying changes right away. Until the premium increase rate stabilizes, it will be important for employers to find a viable way to affordably maintain or increase benefits coverage.

Fijoya Eases the Burden

At Fijoya, we know that employers of all sizes are navigating these challenges. We understand the importance of cost control, quality enhancement, and employee satisfaction. 

Here’s what we’re doing to help you offer your employees the benefits they truly need while maintaining cost-effectiveness:

Customized Benefits

Fijoya’s platform with thousands of tailored benefits allows you to offer narrow network plans and supplemental services, which can lower premiums for employees without compromising breadth, and in turn providing more options they'll actually use.

Cost Control

Our solutions empower you to take control of rising premiums by offering customized Benefit offerings that strike the right balance between affordability and comprehensive coverage.

Lower administrative Costs

Managing point solutions and supporting workers through their Benefit options is a drain on human and financial resources. Fijoya provides a single contract, zero admin platform so all that busy work can be taken off the employer's plate. 

Blog posts

Budgeting

Employer-sponsored healthcare

Talent

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