According to The Centers for Medicare & Medicaid Services (CMS), U.S. healthcare spending is expected to have grown to $4.8 trillion in 2023—a 7.5% increase over 2022.
At a time when many businesses are grappling with increasing inflation, rising costs for goods and services, and growing labor shortages, employers are looking for ways to mitigate the costs of healthcare.
Fortunately, employers can use healthcare analytics to reduce costs by optimizing benefits and empowering employees to advocate for the best price on healthcare.
5 Healthcare Analytics Outcomes that Drive Cost Savings
Incorporating analytics into a comprehensive healthcare benefits strategy enhances employers’ ability to manage healthcare costs, improve employee health outcomes, and increase productivity and well-being across the organization.
Here are five ways healthcare analytics help employers achieve these goals.
1. Enhance decision-making with data-driven insights.
Analytics help employers pinpoint which areas of healthcare spending have the most significant impact on their costs and outcomes. This information can be used to make benefit adjustments, reallocate resources, and introduce new programs that lower costs and improve employee health.
For example, analyzing healthcare data can identify trends and patterns in employee health that enable employers to emphasize relevant preventive health initiatives and personalized care plans. This proactive approach increases employee well-being and reduces long-term healthcare costs for the employer.
2. Identify key cost drivers.
Healthcare analytics can also be used to identify and address key cost drivers, such as surgical expenses and prescription drug costs, enabling employers to implement strategies that lower healthcare expenditures and promote more sustainable spending.
Employee awareness plays an important role in managing these expenses. Educating employees about how much of their healthcare costs are covered by the employer and giving them resources that make it easier to make cost-conscious healthcare decisions can help employers reduce spend.
3. Optimize healthcare costs and reduce financial burden.
Analytics can help employers provide transparency into the true costs of various medical services, treatments, and providers.
When employees can compare costs and quality metrics for various healthcare services and providers, they can minimize out-of-pocket costs and procure the best care for the best value.
Incentivizing the use of high-value healthcare providers through reduced co-pays, financial rewards, or other benefits is another effective way to improve health outcomes and lower expenses for employees and employers.
4. Identify health risks and targeted interventions.
Advanced data analytics enable employers to track trends and patterns and identify individuals at risk of developing chronic conditions such as diabetes, hypertension, or heart disease. Early identification allows for fast, targeted interventions, which are often less costly and more effective than treating advanced stages of illness.
Proactive prevention programs—such as lifestyle coaching, nutritional counseling, fitness initiatives, and regular health screenings—can also help employers address health issues before they escalate, reducing the likelihood of costly medical treatments.
5. Meet employee health and wellness needs.
Healthcare analytics provide insight into employees’ health and wellness needs. Employers can leverage this knowledge to offer support and resources that allow employees to manage their health proactively and make well-informed decisions about their course of care.
For example, offering member concierge services can enrich the employee benefits experience by providing a guide to help them navigate the complex healthcare system. A member concierge offers personalized support, assisting employees with finding high-value, in-network providers and facilities; scheduling care; and coordinating details, such as medical record transfers.
Maximize the Value of Your Healthcare Analytics
Analytics are key to managing today’s rising healthcare costs. By taking a proactive approach, employers can lower their expenditures, reduce employee out-of-pocket costs, improve health outcomes, and increase well-being throughout the organization, leading to a healthier, more productive workforce.
For more information about how to give your employees the resources they need to reduce healthcare costs, download our guide, How to Choose a Healthcare Navigation Solution That’s Right for Your Organization: Four Questions to Ask.
