Healthcare is in a near constant state of change. Annually, this can leave organizations always looking for better ways to adapt and stay on top of the industry<\/span>. <\/span><\/span>What are the biggest <\/span>trends that<\/span> union directors and <\/span>fund <\/span>administrators <\/span>need to be ready for?<\/span> In this blog, <\/span>we\u2019ll<\/span> dig into three <\/span>important topics: rising healthcare costs,<\/span> transparency <\/span>into cost and quality, <\/span>and <\/span>health <\/span>data security<\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n In a report published by <\/span><\/span>Health Affairs<\/span><\/span><\/a>, researchers <\/span>projected<\/span> that national health expenditures <\/span>will<\/span> increase <\/span>by <\/span>5.4% <\/span>annually, <\/span>totaling<\/span> $7.17 trillion<\/span> by 2031.<\/span> There<\/span> are <\/span>several<\/span> factors <\/span>that <\/span>are likely to<\/span> d<\/span>riv<\/span>e<\/span> that increase <\/span>in spending<\/span>,<\/span> like <\/span>a <\/span>r<\/span>ecord-high<\/span> increase in <\/span>Medicare<\/span> enrollment <\/span>at<\/span> 7.5% annually<\/span> and <\/span>more serious care needs<\/span> cause<\/span>d<\/span> by delayed <\/span>care<\/span> in recent years<\/span>. <\/span>Shouldering those costs <\/span>falls<\/span>, primarily, <\/span>on <\/span>private health insurance<\/span> and <\/span>Medicare<\/span>.<\/span> Because of this,<\/span> u<\/span>nion<\/span> organizations<\/span> should prepare for cost increases across their <\/span>total population<\/span>, from dependents to retirees<\/span>.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n One way that unions and Taft-Hartley funds have <\/span>addressed these increases<\/span><\/a> is by working with direct healthcare providers. <\/span>Direct healthcare<\/span><\/a> operates under a fee-for-value model where providers are reimbursed based on patient outcomes, not services rendered like the traditional fee-for-service model. This creates alignment financially and functionally between the member organization and provider to accomplish one common goal: creating healthier members.\u00a0<\/span>\u00a0<\/span><\/p>\n In doing so, <\/span>healthcare costs can stabilize or even decrease<\/span><\/a> year-over-year due to several factors, including:<\/span>\u00a0<\/span><\/p>\n With the <\/span>ever-<\/span>looming threat of cost increases<\/span>, u<\/span>nion organizations <\/span>have a<\/span>n<\/span> opportunity to<\/span> hedge off potential long-term spending with dedicated<\/span>, value-driven <\/span>care for <\/span>their<\/span> member population<\/span>s<\/span>.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n With the passing of the <\/span>Consolidated Appropriations Act (CAA)<\/span><\/a>, the <\/span>federal ‘Hospital Price Transparency Rule,’ and the ‘No Surprises Act,’<\/span><\/a> in recent years, insurers, providers, and hospitals now are required by law to be more transparent and upfront with consumers about pricing, offerings, treatment outcomes, and more. But what does this mean for unions?<\/span>\u00a0<\/span><\/p>\n As a result of the legislation, many community hospitals, systems, and providers will no doubt feel the need to compete regarding pricing and outcomes. Union financial fiduciaries should consider that pressure an opportunity to ensure that members and their dependents are getting the best care for the best price.\u00a0<\/span>\u00a0<\/span><\/p>\n Many administrators are implementing value-driven <\/span>population health solutions<\/span><\/a>, like <\/span>Care Navigation<\/span><\/a> and <\/span>Care Management<\/span><\/a>. These concierge services use data-driven insights to improve the health and wellbeing of specific member populations, saving union organizations and their members valuable time and money. But how do they work?<\/span>\u00a0<\/span><\/p>\n Care navigation is any concierge referral coordination solution that identifies and schedules members with high-quality, cost-effective specialty care in their community, eliminating member frustration in navigating the healthcare maze to find the best price for the best care. Care management solutions identify high-cost, high-risk members who need extra support and proactively engage them in personalized treatment plans to ensure they receive the proper care that is needed to avoid costly care down the road.<\/span>\u00a0<\/span><\/p>\n By investing in these types of tools, union organizations can commit to value-driven care and leverage better health outcomes and costs for their organization.<\/span>\u00a0<\/span><\/p>\n Al<\/span>ong with healthcare\u2019s massive infrastructure<\/span> and economy<\/span> comes <\/span>a<\/span> wealth of personal health data <\/span>for patients.<\/span> The s<\/span>afety<\/span> and integrity of <\/span>that <\/span>personal<\/span> data has <\/span>been a<\/span>n ongoing<\/span> conversation<\/span> as data leaks continue<\/span> to<\/span> rise<\/span>, healthcare seeing the worst of it<\/span>.<\/span> For instance, i<\/span>t was reported that 2022 was <\/span><\/span>the <\/span>second worst <\/span>year<\/span><\/span><\/a> for reported HIPAA compliance breaches, <\/span>with <\/span>roughly<\/span> 700<\/span> data breaches <\/span>accounting for <\/span>over <\/span>51 million <\/span>compromised health <\/span>record<\/span>s<\/span>.<\/span> T<\/span>h<\/span>at<\/span> <\/span>trend continued <\/span>in <\/span>the first half of <\/span>2023<\/span><\/span><\/a> with<\/span> the <\/span>exposure of <\/span>39 million individuals<\/span>\u2019<\/span> data<\/span>, an incident that can cost healthcare organizations <\/span><\/span>$<\/span>H<\/span>ealthcare cost<\/span>s are rising<\/span>.<\/span>\u00a0<\/span><\/h2>\n
How can unions manage cost?<\/span><\/span><\/h2>\n
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Increased<\/span> demand <\/span>for<\/span> transparency<\/span> from healthcare partners<\/span>.<\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/h2>\n
Value-driven <\/span>research and results<\/span> for union members<\/span>.<\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/h2>\n
Healthcare<\/span> data <\/span>security<\/span><\/span>\u00a0<\/span><\/h2>\n