Marybeth Gray, senior VP of health and welfare benefits consulting at Marsh McLennan Agency, advised finance leaders at the CFO Leadership Council’s fall conference in Colorado this week to begin planning for 2028 health benefits by January 2027. Addressing attendees, Gray emphasized the urgency of early preparation, urging them to prioritize health benefits planning as soon as possible.
Gray cited data from the Business Group on Health showing that healthcare costs have increased as much as 76% over the last decade. This rise in costs has become a finance issue, rather than just an HR issue, Gray said.
Gray offered several tips to help keep costs at bay and employees healthy. First, she advised companies to plan early and not fear change. If a company begins planning for next year’s health benefits in summer, it’s already too late, Gray said.
Sometimes, early planning may reveal that it’s time to switch carriers altogether. Gray pointed to General Motors’ recent decision to drop Blue Cross Blue Shield of Michigan and switch to Aetna as an example.
Gray also suggested that companies manage “high-cost claimants” better. Wellness programs are popular among employers, but they aren’t likely to move the needle on costs in the long run, Gray said. Instead, companies should look into ways to “engage” employees with chronic conditions that drive up costs.
For example, employees with diabetes could be auto-enrolled with coaches to help manage the condition. Gray advised companies to ask their carrier partners for data on high-cost claimants and top utilizers in January.
Finally, Gray suggested that companies take advantage of medical advances. There’s a fundamental mismatch between the way health insurance is administered and the state of modern healthcare, Gray said. She pointed to advances such as genomic testing and pharmacogenomic testing, which could help address major health issues before they eat up budgets.
Genomic testing can evaluate an individual’s genes to see if they’re at risk for certain types of cancers. Health plans that cover such tests might help protect employees and ultimately trim costs. Gray asked why companies aren’t incorporating these advances into their health plans.
In the middle of this healthcare cost crisis, it’s clear that companies need to think creatively about how to manage their health benefits. By planning early, managing high-cost claimants, and taking advantage of medical advances, companies can help keep costs at bay and employees healthy. As Gray said, choosing not to act is actually a decision, and companies can’t stand still because healthcare costs don’t stay flat.
