Health benefit costs are on the rise, with no sign of slowing down.
Across the board, per employee per year (PEPY) benefits cost 5.2% more in 2023 than 2022, according to the National Survey of Employer-Sponsored Health Plans. For small businesses (employers with 50-499 employees), PEPY cost is up 7.8%, for an average of $16,464.
In the past, some employers combatted rising prices by shifting some of the cost onto employees through higher deductibles or out-of-pocket maximums. But with general inflation also on the rise, employees and employers alike are getting squeezed.
So how can employers make sure they get the most out of their health care dollars? Transparency in numbers and data is a critical first step.
What Health Care Spend Data Should Employers Know?
To make sure you’re getting the most out of your health benefits, there are a few key data points to monitor:
- Total spend on medical, pharmacy, specialty drugs, and hospital admissions
- Summary of billed charges, allowances, and paid charges
- Utilization numbers for ER, inpatient admissions and outpatient services
By keeping an eye on these key data points, you and your benefit advisor should be able to understand how your benefit plan is performing, and what is driving costs. That way, you can make any necessary updates. When the time comes to make changes to your plan, you will be armed with the data needed to make informed decisions.
Custom Design Benefits offers our Executive Analytics dashboard to our group medical clients to make this data available and easy to understand.
What Heath Care Data and Analytics Are Available From CDB?
Through our Executive Analytics Dashboard, employers and their benefit advisors have real-time access to the data and analytics they need to make informed decisions. On the financial dashboard, employers and their advisors can easily find total dollars spent on medical, pharmacy, specialty drugs and hospital admissions. They can also see how their performance lines up against commercial averages, plus trends in claim types, membership distribution, and where medical claim dollars are being spent. We also provide a financial overview that compares current spending to previous periods and identifies trend drivers.
In addition to spending and utilization information, we help our clients and their advisors identify savings opportunities, member risks and care gaps. With this information at their fingertips, our customers and their advisors are able to take proactive approaches and get the most from their health care spending.
To learn more about Executive Analytics, contact your Account Manager.