For the second year in a row, employers are facing a projected 7% increase in healthcare costs, according to The International Foundation of Employee Benefits Plans. This is a significant jump from the 3-4% yearly increases that were standard for much of the last decade, and the additional cost is shaping the strategy behind the benefits many companies are offering in 2024.

The pandemic instigated a shift in work and lifestyle priorities for many Americans. In response, companies began introducing new or unique benefits to better serve their workforce and stand out in a highly competitive labor market. Mental and behavioral health services emerged as a top priority, leading to the introduction of benefits ranging from fertility assistance to identity theft protection. But now, as the labor market softens and healthcare premiums continue to rise, companies are starting to reassess each offering. Many are choosing to invest more heavily in the basic healthcare benefits for maximum value. Healthcare spend is rising across the country, partially related to an increase in diagnoses — some of which went undetected during the pandemic — along with inflation and a demand for new, expensive developments in medicines and treatments like gene therapy. As a result, companies are seeking an employee benefits strategy that will contain costs while proactively investing in the health of their workforce.

At Graham, we walk clients through a detailed analysis of benefits utilization, engagement and claims, benchmarked with industry data and mapped against each company’s goals to determine the right mix of benefits. Each year, we utilize our proprietary P2RIME® Process — customized for employee benefits clients — to take a deep dive into an organization’s corporate objectives and align strategic benefits accordingly. As clients identify the benefits that had limited engagement and ROI, many of them are shifting away from broad wellness programs to invest more heavily in access to primary and behavioral health care.