Employers are anticipating nearly double-digit healthcare cost growth, with a projected 9.2% rise in costs for 2027. This situation, highlighted in a survey by the Business Group on Health, is prompting businesses to reevaluate their health benefits strategies amid concerns over rising expenses driven by factors such as declining population health and high-cost therapies. To address these challenges, many employers (92%) are planning to adopt value-based strategies, like centers of excellence, and explore alternative health plans within the next three years. AI tools are increasingly being utilized to streamline benefits administration, although they are also cited as contributing to rising costs. Employers are focusing on improving transparency and performance among third-party vendors as they adapt to the changing healthcare landscape.
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Link to original article source: https://www.techtarget.com/healthcarepayers/news/366649696/How-employers-are-rethinking-benefits-as-healthcare-costs-soar
