Employers spend a lot of money on healthcare. As costs increase and budgets tighten, controlling healthcare expenses becomes increasingly critical. In the pursuit of lower healthcare costs, telehealth services are a vital tool.
How Much Are Employers Spending on Healthcare?
A significant portion of employee compensation takes the form of benefits, and healthcare accounts for the lion’s share. According to the U.S. Bureau of Labor Statistics, the average total compensation for civilian workers is $42.48 per hour as of December 2022. Benefits account for 31% of this total, and health insurance alone accounts for 7.7%.
The 2022 Employer Health Benefits Survey from KFF shows that the annual premium for single coverage averaged $7,911 in 2022, up from $6,690 in 2017 and $5,615 in 2012. Although employee contributions cover some of the costs, employers pay the majority.
Family coverage is, as you would expect, even more expensive. In 2022, the average annual premium for family coverage came to $22,463, up from $18,764 in 2017 and $15,745 in 2012. Once again, employers pay the majority of this.
Robust Healthcare Helps Workers and Employers
There’s a reason employers invest so much in healthcare.
Employees place a high value on their benefits, particularly health insurance. According to the U.S. Chamber of Commerce, 96% of employees report viewing their health insurance as either very important or extremely important to them, and 89% of Americans prefer to obtain their health insurance through an employer rather than through other means. If employers want to attract these employees, they need to offer quality health insurance programs.
Employers also have a vested interest in helping workers stay healthy, and health insurance programs with robust preventative care can do this. The CDC says chronic health conditions and unhealthy behaviors reduce worker productivity, and U.S. employers lose $36.4 billion each year in missed days of work due to high blood pressure, diabetes, smoking, physical activity and obesity.
Telehealth Can Alleviate Costs Without Sacrificing Care
Employees need quality healthcare, and employers need to control costs. Telehealth services can help on both fronts. According to the American Hospital Association, a growing body of evidence suggests that telehealth can lower health care costs while improving access to care and quality of care.
The addition of telehealth services provides many potential advantages:
- Telehealth is convenient. Telehealth services can be accessed from the comfort of a person’s home or office, and it’s often possible to access telehealth care outside of normal office hours. This makes it easier for workers to access care on their terms.
- Telehealth saves time. People may sometimes put off or avoid receiving care because they don’t want to spend half the day driving to a clinic and waiting for the doctor, and this can lead to worse outcomes and higher costs in the long run. Telehealth provides a fast alternative for care. This also means that workers may miss fewer hours.
- Telehealth may be less expensive than other options. For example, using telehealth for urgent care can be much less expensive than going to the emergency room.
There’s Still Room to Grow
Most employers have embraced telehealth at this point. KFF says that 87% of small firms and 96% of large firms offer some healthcare services through telemedicine in their largest health plan.
However, there’s still room for improvement. Despite the clear advantages, some employers still aren’t offering telehealth options. Furthermore, although many employers offer telehealth services as part of a health insurance plan, fewer employers offer specialized telehealth services. In 2022, only 32% of large firms and 21% of small firms used a specialized telehealth provider, according to KFF. This means that many employees are missing out on convenient options that could help them maintain their health while keeping costs down.
Primary Digital Health provides the virtual digital health solutions you need to improve access to quality care while controlling your costs. To learn more about our telehealth services, contact us.