{"id":15380,"date":"2025-10-03T09:00:00","date_gmt":"2025-10-03T14:00:00","guid":{"rendered":"https:\/\/www.premisehealth.com\/?p=15380"},"modified":"2025-10-02T15:05:32","modified_gmt":"2025-10-02T20:05:32","slug":"healthcare-costs-are-employers-top-concern-heres-how-theyre-tackling-them","status":"publish","type":"post","link":"https:\/\/www.premisehealth.com\/resources\/blog\/healthcare-costs-are-employers-top-concern-heres-how-theyre-tackling-them\/","title":{"rendered":"Healthcare Costs Are Employers\u2019 Top Concern \u2014 Here\u2019s How\u00a0They\u2019re\u00a0Tackling Them"},"content":{"rendered":"<!-- Divider -->\n<hr class=\"block--divider\" style=\"border: none; height: 1px; margin-bottom: 0; margin-top: -125px; background: transparent \">\n<!-- Divider end-->\n<section class=\"block block--freeform\"><div class=\"container\">\n\n<h2><span data-contrast=\"auto\">Results from Business Group on Health\u2019s 2026 Employer Health Care Strategy Survey<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">If\u00a0there\u2019s\u00a0one thing on employers\u2019 minds,\u00a0it\u2019s\u00a0healthcare costs.\u00a0Can\u00a0we\u00a0blame them?\u00a0In 2023 and 2024, employers faced the steepest consecutive cost increases in\u00a0a decade, exceeding projections and leaving\u00a0organizations\u00a0at a significant cost disadvantage entering 2025, according to\u00a0<\/span><a href=\"https:\/\/www.businessgrouphealth.org\/resources\/2026-employer-health-care-strategy-survey-executive-summary\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Business Group on Health\u2019s\u00a02026 survey<\/span><\/a><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Costs show no signs of slowing.\u00a0Without any changes\u00a0to plan designs,\u00a0the median projected cost increase\u00a0for 2026\u00a0is trending at 9\u00a0percent, notes Business Group on Health.\u00a0Is it\u00a0any wonder, then, that employers report their\u00a0top priority\u00a0for\u00a02026 is\u00a0controlling\u00a0healthcare\u00a0costs, followed by\u00a0making healthcare more affordable for both\u00a0their organization and\u00a0their\u00a0employees?\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">What\u2019s Driving the Surge?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">One word: pharmacy.\u00a0According to the survey, pharmacy accounted for 24 percent of employer healthcare spend in 2024.\u00a079\u00a0percent\u00a0of employers are\u00a0witnessing\u00a0an increase in obesity medications, such as GLP-1\u00a0drugs.\u00a0Organizations\u00a0also cite\u00a0higher rates of cancer and growing use of mental health services\u00a0as contributing to growing costs.\u00a0Together\u00a0with other market forces, these trends are fueling both higher\u00a0healthcare\u00a0prices and greater\u00a0utilization\u00a0across the system.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Beyond implementing prior authorizations and\u00a0offering\u00a0reduced\u00a0pharmaceutical\u00a0rebates, more organizations are turning to alternative solutions to\u00a0control\u00a0spend\u00a0and make\u00a0overall\u00a0healthcare coverage\u00a0costs\u00a0more\u00a0affordable\u00a0for both employer and employee.\u00a0Let\u2019s\u00a0explore five\u00a0strategies\u00a0gaining traction in 2026 and beyond.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">1. Value-Based Care<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Lowering costs begins and ends with embracing a value-based\u00a0healthcare\u00a0model.\u00a0By 2026, 88\u00a0percent\u00a0of\u00a0employers will adopt at least one value-based strategy, according to the survey.\u00a0Whether through bundled payments or other arrangements,\u00a0employers are prioritizing value\u00a0\u2013 raising\u00a0the standard of care their employees receive,\u00a0and the care they pay for.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With value comes accountability.\u00a0Employers are challenging\u00a0providers and\u00a0vendors to deliver measurable outcomes and innovative approaches that improve health while enhancing the employee experience.\u00a0Vendors be warned:\u00a050\u00a0percent\u00a0of employers are\u00a0actively\u00a0reassessing their\u00a0partners, signaling a new era of accountability. Pharmacy benefit managers (PBMs) are also under the microscope.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">2. Centers of Excellence\u00a0<\/span><\/b><\/h2>\n<p><span data-contrast=\"auto\">The focus on value is fueling interest in\u00a0<\/span><a href=\"https:\/\/www.premisehealth.com\/types-of-care\/primary-care\/care-excellence\/\"><span data-contrast=\"none\">solutions like\u00a0Centers of\u00a0Excellence<\/span><\/a><span data-contrast=\"auto\">\u00a0(CoEs).\u00a0The survey shows\u00a0nearly nine out of 10\u00a0employers are pursuing\u00a0new\u00a0care\u00a0delivery models, with\u00a0CoEs\u00a0topping the list.\u00a0In a value-based model,\u00a0CoEs\u00a0reward providers for outcomes and efficiency\u00a0\u2013\u00a0not just\u00a0volume. Directing members to\u00a0these\u00a0centers\u00a0ensures\u00a0they\u00a0receive\u00a0specialized, high-quality care that leads to\u00a0faster\u00a0recoveries, higher satisfaction, and more bang for the healthcare buck. Looking ahead,\u00a0musculoskeletal, cancer, and cardiovascular\u00a0CoEs\u00a0are expected to see the highest growth in 2027\u20132028.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">3. Care Navigation\u00a0<\/span><\/b><\/h2>\n<p><span data-contrast=\"auto\">Care\u00a0navigation ensures\u00a0employees\u00a0receive the right care, at the right time, in the right setting. This reduces waste\u00a0and\u00a0duplication\u00a0of\u00a0care.\u00a0Some studies suggest community care navigation\u00a0likely results\u00a0in a\u00a0<\/span><a href=\"https:\/\/pubmed.ncbi.nlm.nih.gov\/40470624\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">reduction in unplanned hospital admission rates<\/span><\/a><span data-contrast=\"auto\">\u00a0within 12 months, compared to usual care.\u00a0By\u00a0guiding\u00a0members\u00a0to\u00a0high-quality, cost-effective care pathways\u00a0and reducing expensive hospitalizations, navigation improves\u00a0the\u00a0employee\u00a0experience while\u00a0lowering\u00a0overall costs \u2013 a win-win for both employers and their workforce.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">4. Alternative Health Plans<\/span><\/b><\/h2>\n<p><span data-contrast=\"auto\">Alternative health plans are another\u00a0strategy employers are embracing. These plans\u00a0steer employees to providers\u00a0who\u00a0deliver better outcomes at lower costs,\u00a0often offering\u00a0lower copays, tiered networks, and bundled payments.\u00a0Forget the labyrinth of unnecessary specialists and costly referrals\u00a0\u2013\u00a0in 2026,\u00a0it\u2019s\u00a0all about efficiency.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Adoption of alternative plans is\u00a0growing:\u00a0employers offering non-traditional plans are expected to rise from 17 to 24\u00a0percent\u00a0in 2026, with another 36\u00a0percent\u00a0considering adoption for 2027\u20132028, according to the survey.\u00a0By\u00a0embedding\u00a0value-based principles into network designs,\u00a0these\u00a0plans prioritize\u00a0advanced primary care and guided navigation, delivering greater value while\u00a0making high-quality, affordable care easier for employees to access.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2><b><span data-contrast=\"auto\">5. Advanced Primary Care<\/span><\/b><\/h2>\n<p><span data-contrast=\"auto\">Finally, the\u00a0ultimate answer\u00a0to lower costs\u00a0may\u00a0lie in advanced primary care,\u00a0which ranked third in employer adoption of delivery models.\u00a0By 2026,\u00a0a majority of\u00a0employers \u2014 61\u00a0percent, to be exact \u2014 plan to implement at least one advanced primary care strategy.\u00a0This team-based, proactive approach emphasizes\u00a0the member-provider relationship, coordinates\u00a0acute and chronic care, and aims for\u00a0better\u00a0outcomes, lower costs, and\u00a0improved\u00a0clinician and patient experiences.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With growing recognition of its benefits,\u00a0advanced primary care is expected to gain even\u00a0more\u00a0traction in 2027\u20132028, positioning it as\u00a0a central component\u00a0of employers\u2019 strategies to deliver higher-quality, value-driven care to their workforce.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Bottom line: Employers are facing rising healthcare costs, but by embracing\u00a0strategies like\u00a0value-based care, Centers of Excellence, care navigation, alternative health plans, and advanced primary care, they can\u00a0get a handle on\u00a0out-of-control\u00a0costs.\u00a0In 2026 and beyond, the companies that focus on value, accountability, and innovation will be best positioned to thrive.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Want to learn how your organization can reduce healthcare costs while improving employee health and satisfaction?\u00a0<\/span><\/i><a href=\"https:\/\/www.premisehealth.com\/contact-us\/\"><i><span data-contrast=\"none\">Contact\u00a0Premise\u00a0today<\/span><\/i><\/a><i><span data-contrast=\"auto\">.<\/span><\/i><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n\n<\/div><\/section><!-- Divider -->\n<hr class=\"block--divider\" style=\"border: none; height: 1px; margin-bottom: 0; margin-top: -100px; background: transparent \">\n<!-- Divider end-->\n","protected":false},"excerpt":{"rendered":"<p>Results from Business Group on Health\u2019s 2026 Employer Health Care Strategy Survey\u00a0 If\u00a0there\u2019s\u00a0one thing on employers\u2019 minds,\u00a0it\u2019s\u00a0healthcare costs.\u00a0Can\u00a0we\u00a0blame them?\u00a0In 2023 and 2024, employers faced the steepest consecutive cost increases in\u00a0a decade, exceeding projections and leaving\u00a0organizations\u00a0at a significant cost disadvantage entering 2025, according to\u00a0Business Group on Health\u2019s\u00a02026 survey.\u00a0\u00a0 Costs show no signs of slowing.\u00a0Without any changes\u00a0to [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":15382,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2628,2630,2632,2634,2639,4101","_relevanssi_noindex_reason":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[12],"tags":[],"class_list":["post-15380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - 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