Healthcare costs on the rise (again)

The Business Group on Health's annual report anticipates an almost 8% rise in healthcare costs by 2025, marking the largest increase in a decade. This surge is primarily attributed to the escalating costs of high-priced pharmaceuticals, particularly the growing use of expensive GLP-1 medications. Additionally, access to mental health care remains challenging due to provider shortages.

Prioritizing Mental Health

Mental health has become a top priority for employers, driven by increased awareness and understanding of mental health issues. Companies are enhancing their support systems, and several key trends have emerged:

• Comprehensive Mental Health Programs: Employers are expanding mental health offerings, including access to counseling, digital mental health tools, and employee assistance programs. These initiatives aim to provide holistic support to employees, recognizing the impact of mental health on overall well-being and productivity.

Seventy-nine percent of employers say that access is one of their top three mental health priorities for 2025. To address access and costs, employers continue to pursue strategies, such as virtual counseling, eliminating out-of-network barriers and using on-site counselors.

• Reducing Stigma: Efforts to reduce the stigma associated with mental health are gaining momentum. Employers are fostering open dialogues and creating supportive environments where employees feel comfortable seeking help.
• Integration with Physical Health: Recognizing the interconnectedness of mental and physical health, companies are integrating mental health services into their broader healthcare strategies. This approach ensures that mental health is treated as a vital component of overall healthcare.

Addressing Rising Pharmaceutical Costs

The report highlights that rising pharmaceutical costs are the largest driver of overall healthcare cost increases, posing significant challenges for employers managing healthcare expenses. Key insights include:

• Cost Management Strategies: Employers are adopting various strategies to mitigate the impact of rising pharmaceutical costs, such as negotiating better pricing with pharmaceutical companies, exploring alternative therapies, and implementing cost-sharing measures.
• Focus on Specialty Drugs: Specialty drugs, often used to treat complex conditions, significantly contribute to rising costs. Employers are scrutinizing the use of these drugs and seeking ways to optimize their utilization without compromising employee health outcomes.
• Value-Based Care Models: Some employers are turning to value-based care models to counteract escalating costs. These models emphasize outcomes and cost-effectiveness, encouraging treatments that deliver the best value for both employers and employees.

How Meeko Health Keeps Pharmaceutical Costs Down

Meeko Health assists employers in reducing reliance on specialty drugs by providing quick access to effective, generic, safe psychedelic therapies, such as ketamine therapy, which can be as effective, if not more so, than high-priced specialty drugs. Read more...

As we approach 2025, the dual focus on mental health and pharmaceutical cost management will continue to shape employer healthcare strategies. Companies are recognizing the importance of a balanced approach that supports employee well-being while managing financial sustainability. At Meeko Health, we are committed to helping organizations navigate these challenges by providing innovative solutions and insights.

Learn more at meekohealth.com.