"The Cost of Employer-Sponsored Healthcare and the Role of Specialty Infusion Services"

"The Cost of Employer-Sponsored Healthcare and the Role of Specialty Infusion Services"

Introduction:

The cost of employer-sponsored healthcare has been a topic of concern for both employers and employees alike. It is interesting to note that the decrease in employer-sponsored healthcare was driven by a decreased share of lower earners provided with ESHI. This raises the question of whether the government picks up the slack when employers reduce benefits. In this article, we will explore the factors that drive the cost of employer-sponsored health insurance (ESHI) and how specialty infusion services play a role in improving care, lowering costs, and providing a new source of revenue for healthcare partners.

Factors Driving the Cost of ESHI:

• 1. National Health Expenditures: One of the major drivers of the cost of ESHI as a share of compensation is the general trend in healthcare spending. National health expenditures increased from about 13% of GDP in the mid-1990s to around 17% of GDP in 2009. This trend plateaued around this level through 2019, indicating the significant impact healthcare spending has on the cost of ESHI.

• 2. Makeup of Participants: The cost of health insurance as a percentage of compensation is higher for lower earners compared to higher earners. Therefore, a decline in participation among lower earners decreases the employer's overall ratio of ESHI costs to compensation. This decline in participation among lower earners has contributed to a stabilization of costs.

• 3. Family vs. Individual Coverage: Family plans are substantially more expensive than individual plans, and their costs have been growing at a faster pace. As the share of family plans declines, costs relative to compensation will also drop. This shift in demand for family plans has helped offset the growth in healthcare expenditures.

The Role of Specialty Infusion Services:

ContinuumRx is a provider of specialty infusion services that partners with leading health systems to offer a fully integrated, specialty infusion service. This partnership not only improves care but also lowers costs and provides a new source of revenue for healthcare partners. By working closely with providers, ContinuumRx ensures the right setting of care and delivers the appropriate level of education and training to patients.

One of the key advantages of ContinuumRx's specialty infusion services is the ability to provide both home infusion and alternate site options. This flexibility allows patients to continue their treatment and live life to the fullest while receiving the necessary care. The seamless transition from the hospital to the home provided by ContinuumRx improves the overall patient experience and aligns providers in the continuum of care.

Actionable Advice:

• 1. Embrace integrated care models: Healthcare systems and hospitals can benefit from partnering with specialty infusion service providers like ContinuumRx to offer a patient-centered continuum of care. This approach can lead to avoided unnecessary hospital admissions, shorter hospital stays, and reduced readmissions, ultimately improving patient outcomes and operating performance.

• 2. Prioritize cost-effective care options: As the cost of healthcare continues to rise, it is essential for employers and employees to explore cost-effective care options. Specialty infusion services, such as home infusion, can be a viable alternative to traditional in-hospital treatments, providing high-quality care at a lower cost.

• 3. Advocate for healthcare policy reform: To address the rising cost of employer-sponsored healthcare, it is crucial to advocate for healthcare policy reforms that promote transparency, competition, and accessibility. By pushing for reforms that prioritize affordability and quality care, we can contribute to a more sustainable healthcare system.

Conclusion:

The cost of employer-sponsored healthcare has shown signs of stabilization, driven by factors such as national health expenditures, the makeup of participants, and the demand for family plans. However, the projected increase in national health expenditures highlights the importance of proactive measures to counterbalance rising costs.

Specialty infusion services, like those provided by ContinuumRx, offer a solution to improving care, lowering costs, and generating revenue for healthcare partners. By embracing integrated care models, prioritizing cost-effective options, and advocating for healthcare policy reform, we can work towards a more sustainable and accessible healthcare system for all.