Healthcare predictions: What’s in Store for This Year and Beyond?

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Guest blog content provided to Q4iNetwork consultants by freshbenies freshbenies-Logo-CMYK 2018

Love it or hate it, healthcare changes over time— as do the consequences for employers, employees, providers, and patients.

Each year, freshbenies attends dozens of conferences, speaks with thousands of benefits consultants, and reads hundreds of thousands of words about this industry. After all, we’re in this thing together.

Based on what we’ve learned, here are ten predictions for the coming year.

1. Costs will rise. Again.

This seems so obvious to those of us within the industry. So why even list it? Let alone as number one? Because it can’t be ignored, and it continues to rise. Last year, the annual healthcare costs for a family of four were over $28,000. Bottom line: families will continue to carry higher portions of healthcare increases, and it shouldn’t be overlooked or forgotten.

2. Low unemployment will drive creativity.

While rate increases are a constant, the biggest shift this year is to a 3.7% unemployment rate. Fear of loss is always a better motivator than the desire for gain. A tight labor market will drive employers to try innovative solutions more readily. This includes creative benefit plan designs, perk programs and programs for non-benefitted employees.

3. Innovative benefit plans will gain momentum. 

The pendulum will begin to swing toward less traditional plans, including:

  • Value-Based Insurance Design (VBID)
  • Reference-based pricing models
  • Association health plans
  • Captive medical plans 
  • Direct Primary Care (DPC) 
  • High-performance centers of excellence

When suggested in the recent past, many companies have declined to install these ideas amid complaints of complexity, employee confusion or skepticism of savings. But given the low unemployment rate and the fact that consultants are getting better at explaining these solutions and pulling them together – these types of benefit plans will increase. 

4. Perks will pop.

Perks will continue to gain interest and traction. Services like gym memberships, healthcare navigation experts, telehealth, consumerism savings networks, pet care, identity theft protection, flexible hours, remote work, student loan repayment, car wash services, free snack programs, etc. are often the things people list when they brag about their workplace culture. They’ve become differentiators even among the big expense of health insurance. An employer can lose an employee to another company from the draw of perks that scratch an itch employees didn’t even know they had.

5. “Caring” support for workers will grow.

Every employer says they care about their people. But how do they actively show it? Smart employers are getting significant PR power by touting two specific sets of services…

  • Behavioral Health – The US Department of Health & Human Services estimates that 96.5M Americans live in areas with shortages of mental health providers. Effective tools that offer video visits with counselors and psychiatrists or even text-based guidance with specialists provide employees with new methods of care.
  • Caregiver Support – It’s estimated that 1 in 5 employees care for an adult family member or friend. This significantly affects an employee’s work life by adding stress and taking 15 to 20 hours of their time each week. New solutions are capturing employer interests, such as services that pair employees with a licensed coach whose expertise best matches their specific caregiving situation, as well as secure portals for documentation and collaboration. These benefits bring much-needed help, increase productivity and build tremendous loyalty. 

6. Engagement will drive more decisions. 

Continued rate increases coupled with poorly-implemented cost containment tools will draw employers to focus on achieving employee engagement. Stats revealing low utilization will bring cancelation of past programs. A shift will take place from checking the box of offering a service to moving the needle on ROI via higher utilization. 

Employers will be driving employees to programs that:

  • reduce in-patient, urgent care or emergency room visits
  • include Remote Patient Monitoring (RPM), Centers of Excellence, and wearables
  • help employees effectively navigate the healthcare system, from selecting top-tier physicians, and providing price transparency to medical bill review and negotiation

7. AI growth will not be artificial.

Artificial Intelligence and machine learning in the healthcare app space will surpass $1.7 billion this year, while health data analytics will reach $68 billion. The strongest advancements will be with machine learning in diagnostic imaging, drug research, and risk analytics. On the benefits side, we’ll see AI functions being touted throughout websites and apps.

8. Little help will come from DC (Republicans)

With a divided Congress, we can’t expect significant changes in federal health laws over the next couple years. Rather, most changes to the “flavor” of ACA will come from the thousands of issues inside the law that were at the discretion of the various departments like Health & Human Services. 

Hopefully, we’ll see bipartisan agreement with updates to Health Savings Account (HSA) laws. What’s controversial about that, right? Right. Be hopeful, but don’t hold your breath.

9. Lots of single-payer talk will come from DC (Democrats)

Remember when Republicans had one consistent chant of “repeal and replace?” Turns out it was a great slogan, but there was no actual plan to implement it. That’s exactly what “single-payer” is among Democrats this year. 

Lawmakers have many different ideas about what these two words mean, but that won’t slow them down. Single-payer was one of the top subjects during the 2018 mid-term elections and it will gain traction throughout 2019, right into the 2020 election. But it’s unlikely that a workable plan will be developed.

10. True employee benefit consultants will be in demand.

Brokers who aren’t consistently improving their knowledge will fall by the wayside. Consolidation will continue and true consultants will be in demand more than ever before. 

What does this look like? True employee benefits consultants will stop talking about how many decades they’ve been in business and start talking about how they can deliver results to the businesses they help.

They will separate themselves from the broker crowd by coming up with new ideas and new solutions that deliver better healthcare while keeping costs in check.

And when it comes down to it, isn’t that the future we all want to see?

 

Photo credit Andriy Popov 

Compliance: It’s Not Just About Avoiding Risk

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Some businesses think staying in compliance is all about reducing risk and staying out of trouble. But companies that approach compliance as a way to help achieve their overall business objectives will do far more than avoid fines. They’ll build organizations that produce happy and productive employees, loyal customers, and a healthy bottom line.

The relationship between compliance and culture

For business owners, industry rules and regulations are a fact of life, and they can be used in several different ways:

  • As a threat to keep employers in check
  • As a set of rules to keep employees in check
  • As a helpful tool to make your workplace better, safer, and more pleasant for everyone

Now, which one of these three tactics do you think is going to make your business a more enjoyable place to work? Entice new employees to jump on board? Result in a more engaged and productive team?

Yes, you can control your team with threats and rules, micromanage behaviors with fear-based incentives, and rule with a culture of discipline. Or you can use compliance as a way to help you take care of your people and your business.

What’s your motivation?

Let’s think about some of the various aspects of compliance and approaches you may have taken or witnessed in the past.

Harassment

Is your main goal to avoid expensive litigation? Or is it to create a healthy workplace where everyone feels comfortable and respected?

Discrimination

Are you following EEO practices because you’re afraid of being sued? Or are you committed to fostering a diverse workforce with a variety of talents, viewpoints, and experiences?

Payroll

Are you paranoid about compliance because a screw up will cost you back pay plus any added fines and penalties? Or do you value your employees and want to make sure they feel appreciated and get paid correctly?

Benefits

Are you offering health insurance, sick time, and leave options because the law says you have to? Or do you want to invest in keeping your employees happy, healthy, and productive?

Privacy

Do you worry about data security because breaches are expensive and there are fines for releasing confidential information? Or do you truly care about your employees as people and want to protect them and their families?

Licensing

Do you require your staff to have proper qualifications because you don’t want to pay fines or be shut down? Or is it because you want to give your employees the tools they need to succeed and your customers the best service possible?

Safety

Are you checking the OSHA boxes because you’re terrified of the cost of a fine or accident? Or are you genuinely committed to making sure everyone on staff makes it home safely after their shift?

How you view compliance matters

The approach you take to compliance says a lot about the approach you take to running your business and taking care of your employees. If you’ve been looking at compliance as nothing more than a rigid set of rules you have to follow, you’re missing out on a huge opportunity.

Short-sighted businesses view compliance as a necessary tool to control staff and protect the organization. But merely wanting to avoid claims isn’t an inspiring motivator.

Innovative, big-picture organizations see compliance as a natural extension of their business philosophy and strategy.

  • They will find opportunities to align their compliance practices with their purpose, values, and vision.
  • They will look beyond the rules to see why they are important and how they can support the things that matter to their employees.
  • They will associate good compliance practices with good business.

These kinds of organizations will also involve their employees in their compliance processes, giving them a sense of ownership and accountability. Engaged staff members can then become happy advocates and active participants in the creation and implementation of policies that create inclusive, safe, and healthy workplaces.

Some companies will continue to look at compliance as a set of boxes to be checked off, and they will technically be meeting their obligations. On the other hand, businesses that choose to embrace compliance as an opportunity to live out their people-focused values are those that will build the best cultures and attract the best talent.

Why not be one of them?

 

Content provided by Q4iNetwork and partners

Photo by Shopping King Louie