No doubt about it. Employers face unprecedented challenges to support employees amidst constant and ever-changing cost pressures. Inflation and health care spending are both at record highs. In addition, poor health is on the rise, along with it coming a bigger need to address chronic conditions, behavioral health and more. So, how did we did get here—and what can be done? One approach involves looking at whole person health to improve outcomes and subsequently drive down costs. Here, we take an insider look at solving for whole health to address rising cost trends.
Rising health care costs
Since 2017, health care costs have increased more than 50 percent in the U.S. They’re also expected to grow nearly eight percent in 2025, the highest rate in a decade1. There are a number of factors that contribute to the rising cost of health care in the United States. Among them are:
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- High prescription drug costs.
- High cost of hospital and provider services.
- Rising rates of chronic conditions, including mental health diagnoses.
- Aging population.
Reducing health care costs
To effectively lower plan costs, a multi-pronged and strategic approach is recommended. This can include a more holistic and proactive strategy that addresses the root causes for spiking costs. This means looking at:
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- Inflation’s impact on health care costs.
- Prescription drug costs, such as GLP-1s and cellular gene therapies.
- Rise in utilization and cost of behavioral health.
- Oncology costs.
- Uptick in chronic conditions, such as diabetes and heart disease.
Solutions and strategies
So, what should employers do? Solving for increasing health care costs means connecting plan sponsors with the right solutions for their specific needs. Taking a whole health approach helps them to focus on education, preventive care and encouraging healthy, long-term lifestyle behaviors. Below are a few areas to think about.
Incorporating wellness programs. Targeted or more general programs can be designed to assist all members of a population, regardless of health status. Well-being initiatives can include things like biometric screenings, flu shot clinics, wellness challenges, nicotine cessation, fitness programs and more. Proactive measures encourage healthy behaviors. This helps plan participants to avoid becoming at-risk or developing health issues later on.
Adding disease management (DM) tools. Specific DM programs can often be implemented to assist members in understanding and managing conditions like diabetes, high blood pressure and chronic kidney disease. Combined with wellness initiatives, these are aimed at assisting employees who are inactive, have poor nutrition, struggle with weight issues or have other unhealthy behaviors.
Using technology to engage members. Taking extra steps to engage members is also critical to improving health outcomes. Employers can us technology to do this, such as email outreach, text-based challenges, device integration, video and upgrading digital member platforms.
Focusing on preventive care. Focusing on preventive care and early detection of chronic conditions helps lower health care costs. This includes encouraging employees to select a primary care physician (PCP). At least 20 percent of people in the U.S. don’t have a PCP. However, the average annual total cost of patients with a PCP is 27.4 percent lower than those without one. In fact, studies show regular primary care along with an annual wellness visit can save an average of $1,250 per patient, per year.
Offering behavioral health solutions. Mental and emotional well-being have direct impacts on physical health. But how can employers keep up with the high demand for services? Giving employees access to virtual care, along with lower cost or no-cost options, can help significantly. Addressing concerns early is also key, as untreated conditions contribute largely to higher costs.
Did you find this insider look at solving for whole health useful? If you have questions about any of these areas or want to know how Meritain Health® can help, contact us to learn more.
This article is for informational purposes only and is not meant as medical advice.
Sources
PWC, Medical cost trend: Behind the numbers 2025
AMA, What Doctors Wish Patients Knew About Annual Visits
