The headlines about healthcare costs going up seem to never end. When self-funded employers (and payers and providers) see the headlines, many automatically brace for the financial hit to come. But there is often nuance in the increases, with some organizations that see dramatically higher increases and others that have relatively low jumps in total cost of care for covered employees.
A recent example of these alarming headlines came in Healthcare Brew, with the warning that “Employer healthcare costs set to spike in 2025, driven by pharmacy, cancer.”
So how can employers be prepared for what their cost increases might look like in a future year? It starts with having in-depth data and the ability to mine it for insights.
The article from Healthcare Brew highlights two specific areas of dramatically higher spending projected for the coming year – drug costs and cancer treatment. Pharmacy costs already account for more than a quarter of employer healthcare spend, and as expensive drugs like GLP-1s continue to increase in popularity, that trend is unlikely to abate. Cancer treatment also dramatically drives up costs, as the number one most expensive diagnosis among employees.
When self-funded employers have access to in-depth data and analytics tools – including predictive models and forecasting capabilities – they can look at how these higher-level industry trends might specifically impact their employee costs. They can also use that information to develop strategies to mitigate these and other potential cost drivers, like unnecessary ER visits or preventable hospital readmissions.
Discover how Cedar Gate’s Healthcare Benefits Analytics software helps employers take control of rising costs. Schedule a call or request a demo to get started.
