Deferred medical care can result in higher costs and increased health risks for employees. Learn how companies can address these challenges and minimize their financial impact.
Employer-sponsored health plans have traditionally prioritized preventive medical care, aiming to keep employees healthy through annual check-ups, wellness programs, and other healthcare incentives. However, the COVID-19 pandemic drastically reshaped how employees access healthcare.
According to the Centers for Disease Control and Prevention (CDC), approximately 41% of people deferred care during 2020 and 2021 due to pandemic-related concerns. Many chose to postpone elective procedures or in-person visits to minimize their risk of exposure.
As more employees delayed seeking medical care, individuals with underlying conditions such as asthma, immunosuppressive diseases, and diabetes were left without adequate treatment, forcing many to play catch-up in recent years. This trend has led to a surge in healthcare utilization, pressuring employers to manage rising demands.
However, many employer health plans are not equipped to handle the costs of delayed care. To mitigate the financial impact of deferred medical care, employers must adopt proactive strategies to effectively manage future healthcare expenses.
As employees begin addressing the medical care they put off, employers can reduce costs by guiding employees to affordable, in-network care options.
A significant portion of an employer’s total medical expenses comes from avoidable out-of-network expenses. By helping employees choose the best in-network providers, unnecessary out-of-network expenses can be avoided, lowering overall healthcare costs for both employees and employers. Employers can also guide employees toward cost-effective healthcare options, such as outpatient facilities or inpatient care options for procedures and imaging. For instance, encouraging employees to visit imaging clinics instead of hospitals for services such as CT scans, MRIs, and x-rays can significantly reduce costs.
Employers can lower the costs associated with deferred medical care by empowering employees with greater healthcare knowledge. Informed employees are better equipped to make smarter decisions, ultimately reducing overall healthcare expenses by avoiding unnecessary treatments and costly procedures.
One option for boosting education is developing an easy-to-use benefits portal that provides essential resources, including health plan options, forms, enrollment schedules, and links to health-related tools. Educational efforts should extend beyond the open enrollment period and continue throughout the year by sharing educational resources in emails, flyers, webinars, videos, and workshops.
Finally, employers can reduce the costs associated with deferred medical care by promoting a culture of health and wellness. By encouraging employees to exercise regularly, maintain a balanced diet, manage stress effectively, and prioritize routine doctor visits, employers can help lower medical needs while enhancing overall well-being.
Fear of unaffordable prescription prices can often cause employees to skip treatments, delay filling prescriptions, or avoid follow-up appointments altogether. Employers can play a crucial role in addressing this issue by offering programs that educate employees about cost-saving options like generic medications, biosimilars, and prescription assistance programs.
Employers can promote the use of generic medications, which can be cheaper than brand-name drugs, and biosimilars, which offer similar effectiveness and allow patients to pay approximately 45% less out of pocket. Additionally, employers can provide a prescription assistance program, such as SHARx, that can provide low-cost medications for eligible employees, helping to ease financial strain.
Advances in technology have allowed employees to stay connected to medical professionals. Telemedicine, for example, has emerged as a more accessible and cost-effective solution, enabling flexible and convenient care. It allows for faster, more frequent consultations, helping to lower deferred medical care rates and overall healthcare costs.
Beyond telemedicine, tools like chronic condition management apps, virtual health programs, and digital physical therapy platforms offer innovative ways to support wellness and further reduce medical expenses.
Rising costs from deferred medical care are expected to continue affecting employers. By implementing strategies, companies can help control escalating expenses while prioritizing employee health and well-being. For guidance on navigating challenges related to deferred medical care, reach out to a trusted partner.
