Employers anticipate spike in healt hcare costs

BUFFALO, N.Y. — As the cost of health insurance continues to increase, employers are looking for the most sustainable ways to keep up.

“We are sensitive to the fact that health care is not cheap. Affordability is an issue, not only for us, but across the industry,” said Mark Muthumbi, senior vice president of commercial market leader and regional president of Central New York & Southern Tier for Excellus. 

But why are we seeing such an issue of affordable health care? Some experts say it boils down to a few key things like the rise of hospital costs, higher utilization rates of health insurance and the use of prescription drugs.

“Prescription drug coverage used to be a very small component of medical care. Now, it accounts for more than a third, and rising,”  Muthumbi said. 

The rise in cancers and even the rise in popularity of things like GLP-1 drugs also playing into the spike in health insurance costs, leaving employers trying to figure out the best way to afford coverage options for employees.

“Understanding and meeting each employee where they are with their needs as an individual or with their family and in our, you know, culture, building environment, finding great ways to make health and wellness a part of our focus is important,” said Jessica Savage, president and CEO of Dixon Schwabl Company.

Savage says that the answer to affordability starts with finding a balance between preventative care and personal health and wellness.

“If you’re healthy, you can utilize your preventative services at no cost, right? So, just don’t, not just going to see a provider when you’re sick, but the preventative services that are available at no annual cost,” said Muthumbi. 

It means the simple rules for staying healthy may start to be a lot more important.

“Number one, having a primary care physician is, I would probably say, the first step, right? When you engage with the primary care physician, they can help you navigate through your health care challenges,”  Muthumbi said.

“If you walk into Dixon Traveling Company, there’s always a basket of apples on the front desk. And I know it’s small, but really I do think an apple a day keeps the doctor away,” said Savage. 

Experts say staying informed will also play a big role.

“It’s also just as simple as cost and calling customer care and say, ‘Hey, I’m fixing this issue, what resources and options do I have?’” Muthumbi said.

As costs begin to rise, preventatively taking care of your health is more important than ever.

“When you make it part of your culture, I think, then you start to create the expectation and behaviors that we’re all trying to do our part to take care of each other,” said Savage.