How Leveling the Health Playing Field Can Save Lives

As a CFO, you have more control over your company’s overall health spend than you might think. By identifying the employee populations most at risk for chronic health issues, you can help these employees avoid serious medical conditions and dramatically lower health costs for your business.  

Research shows low-income and marginalized groups struggle to access affordable quality care, resulting in lower outcomes. For example, Black Americans are 40% more likely to die from heart disease and stroke than White Americans, and Hispanic Americans are 24% more likely to experience poorly controlled high blood pressure.

Don’t think of health disparities as just a social issue. As mentioned earlier, this could massively threaten your bottom line.  According to the Business Group on Health, large employers estimate that health disparities contribute to around $1,650 per employee in excess costs. For a company with 10,000 employees, this amounts to an additional $16.5 million annually. Employers across the U.S. are estimated to spend an extra $320 billion annually due to health disparities and lose around 225.8 billion in decreased productivity costs.

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Can employers close the gap?

If health disparities have such deeply embedded roots, can employers really do anything to reverse them? You’d be surprised. Health benefits experts are successfully reducing the health outcomes and medical expenses of employees from underserved groups. Benefits experts understand how to tailor their support and communication to meet the specific needs and preferences of people of all backgrounds, education levels, and ethnicities. They also ensure that employees can find culturally competent care–often from providers who share the employees’ cultural background. According to the Journal of Health Affairs, patients who shared a racial or ethnic background with their healthcare provider were 19% more likely to adhere to treatment plans and reported a 23% increase in overall trust in the healthcare system

Steer employees to benefits most relevant to them

Effective benefits experts turn cultural insights into action. By offering personalized advice and culturally competent guidance, benefits experts can help employees navigate their often overwhelming plans, directing them to specific resources that are relevant to them. For example, benefits experts can promote maternal health benefits to women of color, who face higher risks during pregnancy and childbirth - with the Black infant mortality rate being 2.3 times higher than the White infant mortality rate, according to data from the National Center for Health Statistics. Similarly, steering employees to mental health resources that are culturally and linguistically appropriate can help reduce disparities in mental health outcomes among minority groups.

Helping employees receive appropriate benefits support will reduce rates of costly emergency interventions, long-term disability claims, and absenteeism. Moreover, fostering a more inclusive benefits environment boosts employee satisfaction and retention, which will further cut down on recruitment and training expenses for your business.

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Address health challenges before it’s too late

Preventative care is often overlooked in certain populations. This makes it even more crucial for benefits marketing campaigns to promote the use of preventive services, directing employees towards affordable and geographically accessible options. They can also feature incentives, such as gift cards, for employees to complete health screenings.

Promoting early intervention programs are also essential, particularly for managing chronic conditions that disproportionately impact certain groups. For example, offering diabetes management programs that include regular monitoring, medication adherence support, and access to nutrition counseling can significantly improve health outcomes for employees at risk. By preventing complications that would otherwise lead to costly hospitalizations, these programs contribute to lower overall healthcare costs.

Trusting providers is key

Employees are more likely to trust providers who look like them, a phenomena known as the same-race-effect or in-group-bias. Likewise, benefits experts should help employees find providers who come from similar ethnic, cultural, and linguistic backgrounds. If employees feel understood and respected by their healthcare providers, they are more likely to seek care and adhere to treatment plans, leading to better health outcomes and reduced costs for employers.

Moreover, it’s critical employees find providers who can effectively communicate with them. If benefits experts are unable to point employees to providers who speak their language, they can help them find ones who offer interpretation or translation. This is particularly important for preventing misunderstandings that can lead to misdiagnoses or non-adherence to treatment plans.

By improving access to culturally competent care, benefits experts can help dramatically improve health outcomes, reduce overall healthcare costs, and create a more inclusive and committed work environment.

Technology meets employees where they are

New benefits innovation can help employees access care–no matter where they are.  Virtual care and virtual mental health services, for example, can eliminate geographic barriers to care, making it easier for employees in remote or underserved areas to access medical advice and treatment. Benefits support will also offer post-visit phone calls to ensure employees are continuing care.

In addition, mobile health apps can be used to provide health education, track health metrics, and offer reminders for medication adherence and appointments. These tools are particularly valuable for employees who face barriers to traditional healthcare, such as transportation issues or lack of nearby providers. By leveraging technology, companies can ensure that all employees have access to the health information they need, supporting employees’ long-term health–and companies’ bottom line.

Final thoughts

Health inequities are a significant but often overlooked driver of rising healthcare costs for employers. By partnering with health benefits specialists to implement strategies that address these disparities, companies can achieve substantial cost savings while promoting a healthier, more equitable workforce. The result is a win-win for all: reduced healthcare expenses, improved employee well-being, and a stronger, more sustainable business.

Next Steps

Remember: health disparities don’t have to be a permanent drain on your companies’ finances. As a business leader, you must assess which employee populations face the steepest medical costs and then take proactive steps to help them obtain better and more affordable care. Curious how benefits support can help set your entire workforce on a path towards better health? Reach out today to learn more.