Pandemic-related delays in care among reasons for increase
The costs of delays to healthcare treatment brought about by the pandemic are causing concern among employers.
Cancer has become the top driver of large companies’ healthcare costs in the U.S. — ahead of cardiovascular disease and musculoskeletal conditions, according to the Business Group on Health.
More than one in 10 (13 per cent) employers have seen more late-stage cancers and 44 per cent anticipate seeing such an increase in the future, likely due to pandemic-related delays in care, finds the survey of 135 large employers who together cover more than 18 million people in the United States, conducted between May 31, 2022, and July 13, 2022
After experiencing no increase in actual healthcare costs from 2019 to 2020, employers saw an increase of 8.2 per cent in 2021.
“Employers shared that they are deeply concerned about unsustainable health care costs, the devastating effects of the pandemic on employee health, and the need to work creatively with their partners toward a more positive and sustainable health care experience, among other issues,” says Ellen Kelsay, president and CEO of Business Group on Health.
The effects of COVID-19 and its overall impact on health has been acute for many women, according to a study done in Alberta, as many women postponed important medical appointments during the crisis.
Thirty-five per cent of Canadians have been diagnosed with chronic disorders, and many of them are reluctant to seek help amid the COVD-19 pandemic, according to a separate report.
Prescriptions, mental health
Many other factors are driving health-care costs, finds the Business Group survey.
Large employers overwhelmingly (99 per cent) are concerned about prescription drug trend. In 2021, prescription drugs accounted for 21 per cent of employers’ health care costs, with more than half of pharmacy spend going to specialty medications.
Also, 43 per cent of employer have seen an increase in spending for long-term mental health issues, both observed and anticipated. And 39 per cent anticipate such increase. In response, employers plan to keep many pandemic-related health and well-being offerings in place for the foreseeable future; 85 per cent will do so for mental health.
There was a noticeable increase in the number of claims for mental health-related medications during the second year of the pandemic.
Wellness strategies
Three-quarters of employers (74 per cent) believe that virtual health will significantly impact future health care delivery, and 84 per cent say integrating virtual health and in-person care delivery is critical for success. A third (32 per cent) will offer virtual primary care in 2022, and this will increase to 69 per cent in 2025.
And a health and well-being strategy continue to play an integral role in workforce strategy, say 65 per cent of employers, an increase from 42 per cent last year in 2021.
“This is the culmination of several factors over time, including the need to attract and retain employees and support employee overall well-being, and the impact of workforce well-being on business performance and culture,” according to Business Group on Health.
Canada’s Mental Health Index score for June 2022 is 64.1 points out of 100, declining from May’s score of 64.9 points, according to a July survey.
“While many organizations have marked the recent months as a return to a semblance of normalcy, it is clear we are not out of the woods just yet,” says Stephen Liptrap, president and CEO of LifeWorks.
