Balancing Care and Cost: Effective Benefits For Everyone

“The cost of healthcare is expected to rise between 6-9% this year,” said Courtney Vinopal, senior reporter at HR Brew, citing estimates from Mercer while moderating a recent panel at From Day One’s June virtual conference. Globally, estimates are even more dire at 9-12%, says Damilola Akinduro, global head of benefits at Equinix.Employees expect benefits that support mental health, family needs, and financial well-being, but employers must provide them while managing costs. Striking the right balance requires prioritization, creative solutions, and clear communication so employees understand the value of what’s offered. Which benefits are the most innovative and impactful today? Panelists answered these questions and more during the virtual session. There are numerous factors behind the rising costs of healthcare, says Akinduro. “Our primary drivers include medical inflation; of course, general inflation impacts that. We see an increase in utilization as well, and specialty care [such as] oncology treatments,” she said. Other specialty or chronic issues on the rise include musculoskeletal problems and diabetes care. Gillian Plummer, director of employee health and wellness at Quest Diagnostics, says medical advancements and new therapies, while beneficial, can also contribute to rising costs. “We see pharmacy trends with GLP-1’s and autoimmune cancer gene and cell therapies,” Plummer said. “And let’s not forget the impact of surprise billing, [which] is also driving costs. One other aspect is the use of AI for upcoding of claims.” This new reality is daunting. “Employers are always concerned about the burden this puts on their employees,” said Rebecca Liebman, CEO and co-Founder of LearnLux. Her team helps by incorporating healthcare coaching into employer-sponsored financial well-being programs. “In the United States, picking [one’s] own healthcare plan is the number one reason for personal bankruptcy. A lot of people might be contributing to their 401k, but they’re struggling with this medical bill…their kid broke their leg, or they have an unexpected expense,” she said. Panelists shared their insights on the topic "Balancing Care and Cost: Effective Benefits For Everyone" (photo by From Day One)Teaching employees to incorporate healthcare into their budgets can help them prepare, as can educating them on all benefits available. “If people are scared of the bills, they delay going to the doctor, and usually that ends up costing them and their company more later on. [Make] sure people understand what they have access to now, so it doesn’t build up and become incrementally or exponentially more expensive for them and their employer,” said Liebman. Monique Scroggins, VP of HR total rewards and operations at Lloyds Banking Group, and her team have launched a cost-containment strategy centered on wellness programs. “A lot of our higher claims came around GLP-1 and oncology claims, so we focused [on] return-to-office engagement [and] having people on site teaching you how to eat clean and healthy, and encouraging you to take walks on your lunch break.” Similarly, Quest launched “Healthy Quest” for its 40,000 frontline workers, centered on pillars of how we work, eat, move, and feel, each of which can combat chronic conditions. “It’s really important to have a strategy like that with an organization: not just communicating it broadly, but you physically need to be there on site with your employees and have your leaders and middle management be able to adopt the program,” Plummer said. Plummer’s team also provides over 50 health tests for employees through “Blueprint for Wellness,” collecting data that can help predict future health issues. “Many have changed their lives because of Blueprint for Wellness; they found out they were at risk of a heart attack. That’s very shocking, and that would also be a high-cost claim on our plan,” she said. Designing an Effective Benefits Program As noted, leadership buy-in for any benefits program is crucial. “We have a benefits design committee that consists of our CEO, CFO, legal compliance, [and] our CHRO. We meet monthly and go through all of our strategies,” Plummer said. HR reps should be prepared to articulate needs and potential positive outcomes to higher-ups. “We’re presenting this as a business investment rather than just a cost increase,” Akinduro said. There is one big paradox that can make pitching a benefits program tricky. “The primary goal is to get employees to use these benefits. Utilization is a metric that employers are looking at to judge the success of benefits, but as more employees use a benefit, that can also drive the costs [to] the company higher,” Vinopal said. It’s up to HR to balance those competing goals. For example, Plummer’s team at Quest has seen a rise in mental health claims, with the “anxious generation” of 18-34-year-olds consistently seeking support. “It’s a totally different generation that’s entering the workforce,” she said. While those costs are higher, they are also leading to more productive and engaged employees. Quest also offers free therapy sessions to employees to help combat those costs. “It [also comes] down to culture in your organization: how your supervisors, managers, or leaders are working with their employees impacts mental health too,” Plummer said. Looking at the DataMetrics of benefits engagement should be approached with diligence and nuance. Liebman notes that engagement data can be tailored to the specific benefits, noting that some apps are automated and may be working well but don’t require as much day-to-day engagement as something that relies on one-on-one customer care; both can still be highly effective. It also depends on the individual using the benefit. “It’s [about] understanding what people need from an accountability and engagement perspective, providing all levels of access so that someone can engage in the way that works best for them,” said Liebman.The best wellness programs are holistic, recognizing that various aspects of life and work impact health. “Organizations are realizing that financial health is health,” Liebman said. “Financial stress has major impacts on the brain and mood, cardiovascular, respiratory, gut, digestion, immune system, hormones, muscle, sleep, and recovery. Every single thing in your life that you’re working through from a health perspective gets impacted if you’re stressed about money. Financial planning is really just life planning, so that’s changed who might even own this function within the organization.”As employers continue to balance cost and care, they shouldn’t shy away from being transparent with employees about the value of what is being offered, Akinduro says. “People see the employer contribution alone, but they don’t understand the total value.  From time to time, we have to make them aware that behind that is a whole lot of costs that you’re not privy to, and we go all out to make sure that you’re cared for,” she said. “Sometimes employees think that their benefits are not competitive, whereas they are competitive, [but] they just don’t understand it. In written texts, ‘ask me anything’ programs, all-hands sessions, HR sessions, we deploy quite a mix of communication strategies to get people up to speed.” Her organization even includes administrative costs in printed benefits materials, so employees understand the full value of offerings.  With costs on the rise across all areas of life a comprehensive benefits package is a generous way to support employees that may be more affordable than salary raises or bonuses. “It’s hard to live without thinking about how every cost is going up,” Liebman said. “They can say, ‘Even though you’re only getting a one or 2% raise, we’re bringing in a benefit to help you understand what to do with your salary, and how to best utilize it.’ So it’s a way that they can still support their employees through times like this.”Katie Chambers is a freelance writer and award-winning communications executive with a lifelong commitment to supporting artists and advocating for inclusion. Her work has been seen in HuffPost, Top Think, and several printed essay collections, and she has appeared on Cheddar News, iWomanTV, On New Jersey, and CBS New York.(Photo by erdikocak/iStock)