HCIT: Rising HC Costs Are Raising the Value of Proven Benefit Solutions; Benefits Consultants Dinner Meeting Takeaways

Research evidence excerpt

HCIT: Rising HC Costs Are Raising the Value of Proven Benefit Solutions; Benefits Consultants Dinner Meeting Takeaways

erts were also skeptical that Individual Coverage Health

Reimbursement Arrangements (ICHRAs) represent a long-term solution for larger

employers. While ICHRAs shift employees into the individual insurance market, they

do not address the underlying drivers of healthcare inflation. In their view, changing

the financing mechanism does little to alter the fundamental economics of healthcare

delivery.

Employers Are Raising the Bar on ROI and Vendor Accountability. As healthcare

cost pressure intensifies, employers are demanding stronger evidence that benefit

programs generate measurable value. Our experts highlighted a persistent gap

between vendor-reported savings and the outcomes employers ultimately recognize in

their healthcare budgets. However, our experts also noted that ROI should be evaluated

differently across categories. Programs addressing major cost drivers, such as specialty

pharmacy, cancer care, fertility, and MSK, may warrant investment even if returns

are not immediately visible, provided they improve outcomes, reduce future medical

costs, or enhance employee experience. As a result, employers are becoming more

disciplined about vendor selection, while remaining willing to invest in solutions that

address high-cost claims and demonstrate a credible path to long-term value creation.

MSK Remains a Significant and Underpenetrated Cost-Management Opportunity.

Our experts view musculoskeletal (MSK) care as one of the more compelling

opportunities for employers seeking to manage healthcare costs, given the category's

large contribution to medical spend and the potential to avoid unnecessary surgeries

and downstream costs.