Jake Doman, Consulting Director at Axion Risk Management Strategies, provides insight on the impact of 2021 and 2022’s high-dollar healthcare increases. The healthcare trend in certain areas of the country is reaching 15-year highs.
Care deferred during the pandemic returns – Healthcare spending by employers in 2020 was lower than expected because of the deferral of care as a result of the pandemic. In 2022 some of this care will rebound and increase healthcare spending.
COVID-19 costs are likely to persist – The costs of testing for COVID-19, treating patients, and administering vaccinations for the disease will likely continue into 2022.
The mental health and substance use crises show no signs of slowing down – The pandemic substantially increased demand for mental health services and the abuse of substances. Increased substance use also likely will increase healthcare spending in 2022.
Population health worsened during the pandemic – Poor pandemic-era health behaviors such as lack of exercise, poor nutrition, increased substance use, and smoking may lead to deterioration in US population health and increase healthcare spending.
Musts-haves:
- Companies need to create efficiencies through their locations and networks.
- Employees need tools to choose, find, and utilize their plans properly.
- With mental health and population health decreasing, employers need to solve for the root cause of chronic conditions – both financially and from a health standpoint.
