Consumerization forcing benefit options to expand
Benefits are complex, and the need for customization has driven employers, and carriers, to offer a greater variety of health, gap and voluntary benefits to match consumer demands. In 2018, 79% of employers offered at least one additional voluntary benefit. 38% of employers offered voluntary life, 18% offered legal insurance, 14% offered identity protection and 9% offered pet insurance. And 42% of employers offered at least one voluntary income protection benefit (voluntary accident, critical illness, hospital indemnity), and 18% offered all three. When given the choice, 25% of employees elected at least one of these products.
Telemedicine, too, is a way to leverage the consumerization trend for improved service and cost savings. Since telemedicine is virtual, and many providers even offer 24-hour access, it meets consumer expectation for “on-demand” everything. It gives people the opportunity to check up on their health without the added time it takes to get to and from the doctor’s office, lessening the stress of using a sick day.
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More benefits choice options are great for the consumer but in order to navigate this complicated landscape, employers need to provide educational tools so their employees can make the best decision about what plan to choose and how to get the most value.
What does this mean for providers?
As health care spending continues to grow – predicted to outpace GDP growth and rise to 19.65% by 2024 – it’s safe for health care providers to assume that HDHPs will continue to increase in popularity. Because of this, it’s imperative to both payers and providers that the patient fully understands the care delivery options and the costs associated with their plans, so that they can make informed, long-term decisions.
Health care costs will no longer be trivial for consumers. Patients are already recognizing the HDHP out-of-pocket cost implications of consuming health care services and many will subsequently change how they make decisions regarding their care delivery. This change in consumer behavior is already impacting health care, as hospital services are declining, giving way to a rise in ambulatory delivery centers, such as urgent care and ambulatory surgical centers. To help combat this, providers can offer telemedicine services, which can be delivered to patients at a relatively low-cost, and give consumers another option when they don’t need to treat chronic issues or seek emergency treatment.
