Key strategies to get ahead of healthcare cost increases

Historic lows in healthcare costs in Q1 and Q2 are now a reality as the latest GDP data shows healthcare spending decreased by an annualized $595B in Q2. This cost trend is only expected to get worse as states attempt to reopen and are forced to shut down again, playing out the worst-case scenario cost projection model.

Predicted healthcare cost impact model

Subsequent bulge is larger than dip and new normal trend is set

Based on the level of disruption that has already occurred (and is likely to continue as re-openings occur and potentially retract), this scenario is the new base case against which planning and budgeting should be considered.

Employers must consider strategies to directly address impacts on healthcare cost to mitigate long-term effects of the pandemic.

Check out our free e-book—5 Strategies to Get Ahead of Healthcare Cost Increases—to get a head start on containing your healthcare benefits costs.