Self-funded employers are in a pinch because healthcare costs are predicted to go up by another 7.7% next year. The increase follows the upward trend over the past few years – 6.5% and 6.9% increases in 2023 and 2024, respectively. Employers are looking for alternative strategies to control costs without simply passing the increases on to employees. According to the 2024 Best Practices in Healthcare Survey from Willis Towers Watson (WTW), only 34% of employers plan to shift costs to employees by raising premiums, and just 20% are considering account-based or high-deductible health plans. Instead, employers are looking to control costs with technology-enabled solutions.
The Self-Funded Employer Challenge
“Healthcare costs are rising to a post-pandemic high, and employers are searching for ways to manage these increases without placing too much burden on their employees,” said Tim Stawicki, chief actuary for health and benefits at Willis Towers Watson.
Prescription drug prices are driving up healthcare costs, and employers are understandably concerned. Often, as health costs go up, the burden is shared between employers and employees. However, maintaining a healthy balance between cost containment and employee satisfaction can be challenging.
Traditional healthcare cost-sharing strategies includes things like raising premiums, increasing deductibles, steering employees toward lower-cost providers, expanding use of prior authorization, or limiting access to high priced drugs. Strategies like these make healthcare more expensive and less accessible, making them very unpopular with employees. But how can employers manage growing drug costs in ways that benefit both the organization and its employees? The answer lies in a balanced approach, and this is where RazorMetrics steps in.
A Tech-Forward Approach
Employers looking for cost-cutting solutions that avoid frustrating valued employees are turning to new healthcare models and tech. The WTW report found that 54% of employers plan to adopt technology-enabled solutions, 21% are turning to new pharmacy models like drug discount cards and direct-to-consumer prescription delivery, and 18% may allow members to purchase medications through cost-plus outlets. While these approaches can lower drug costs, they rely on the employee to find the savings, which can be confusing and make it harder for them to access the medications they need.
RazorMetrics offers an all-of-the-above solution that supports both the employer’s financial objectives and the employee’s well-being. Our innovative platform helps employers rein in prescription drug costs while ensuring employees have access to the medications they need at lower out-of-pocket costs. This is achieved through our proprietary algorithms that identify lower-cost, clinically equivalent medication options, polypharmacy management, biosimilar interchange, discount card and mail pharmacy, and specialty drug solutions.
How RazorMetrics stands out:
- Physician-Driven Process: RazorMetrics makes physicians a partner in saving their patients money and improving access to needed treatment. By providing clear insights into lower-cost alternatives, employees’ physicians understand the most affordable options and they are empowered to help patients take control of their healthcare spending.
- Savings Without Sacrifice: Employers benefit from reduced overall healthcare costs without having to make unpopular changes to plan designs or increase employee contributions. Employees, in turn, save money on their prescriptions, reducing financial stress and improving their overall satisfaction with their employer’s health plan.
It is safe to say that healthcare costs will continue to rise, and employers need solutions that address cost challenges while supporting employee wellbeing. Companies need a long-term and proactive solution to manage risk of ever-increasing healthcare costs. This is where RazorMetrics provides a win-win: employers achieve sustainable cost savings, and employees enjoy better access to affordable medications.
In the rapidly changing healthcare marketplace, forward-thinking employers are embracing new technology to address the chronic problem of high drug costs. RazorMetrics offers an AI solution, helping companies reduce their healthcare spend while keeping employees engaged, informed, and satisfied with their healthcare choices.
Your next move? Contact RazorMetrics today to begin building a smarter, more affordable pharmacy experience—for both your organization and your employees.
