Kate Werner
Associate Vice President, Employee Health & Benefits
Health care consumption doesn’t resemble what it used to a decade or even five years ago. Technology advancements combined with societal shifts and changing needs have ushered in telemedicine, which in turn has drastically changed the way people approach health care. As a result, companies are rethinking insurance strategies to retain employees and remain competitive in hiring new talent, while also staying mindful of costs.
Virtual office visits have not just become a new norm for primary care – they're also increasingly a go-to for specialist visits, such as for musculoskeletal, physical therapy and mental well-being care. As health care evolves, employees and business owners are adapting to this new normal. The challenge? Offering the right virtual benefits while keeping costs at bay.
The rise of virtual care
Telemedicine was used intermittently prior to COVID-19, but not to the degree of its frequency during the pandemic’s peak, and not like it’s used now. According to a medical journal study, an estimated 50% of physician visits were through telemedicine in April 2020. Since then, virtual care has become a more mainstream employer insurance offering. Today, 64% of employers provide virtual care options as part of their benefits package, according to Marsh McLennan Agency’s 2024 report on benefits trends.
Key ways virtual care is transforming health care benefits
There’s a reason more employers are integrating virtual care into health care insurance options. For one, employees expect it. According to a recent Society for Human Resource Management (SHRM) study, 91% of adults who have used virtual care would do so again, preferring this model over in-person visits. Additionally, 53% of employers believe virtual care is a principal means of improving patient care and outcomes.
Overall, virtual health care’s evolution is shaping the way employers deliver health care benefits by:
- Boosting convenience and accessibility: Virtual care visits benefit both employee and employer by removing drive times and wait times. In addition to saving time, telemedicine has made some specialty areas with historically long waits, such as mental health, more accessible.
- Expanded scope of services: Specialty areas like behavioral health, musculoskeletal care, dermatology and reproductive care have expanded their virtual footprint, and employers are steadily incorporating these offerings into employee benefits packages. According to the earlier mentioned Marsh McLennan Agency report, 34% of employers plan to offer virtual behavioral health care (network of exclusively virtual therapists); 33% plan to offer virtual care options for specific areas such as musculoskeletal or diabetes, and 17% plan on providing dermatology or reproductive care.
- Cost efficiency and savings: More than 65% of patients who met virtually with providers during the pandemic encountered lower costs compared with appointments in person. For employees, the convenience of saved time and often reduced virtual visit fees are a major benefit. Employers also can realize reduced costs from a reduction in employee in-person provider visits.
- Proactive health management: As briefly mentioned above, employees may be more proactive in managing their health when they have access to virtual care. Having greater access to care makes it easier to swiftly address potential illnesses or problems. Virtual health options help employees be more proactive in their health due to the flexibility and variety of preventative health options. As a result, the benefit for employers is reduced absenteeism.
- Artificial intelligence (AI) enhancing member services: As AI evolves alongside digital health platforms and applications, there is more potential to help clarify, simplify and enhance the accessibility of employee health insurance open enrollment and education. For example, AI chatbots can help members ask specific questions and compare policies, schedule reminders and appointments during open enrollment and provide cost estimations.
Challenges and considerations
Health care costs are rising in the U.S., and they are expected to increase 19.7% by 2032.
According to the Centers for Disease Control and Prevention, 90% of the nation's $4.5 trillion in annual health care expenditures are for people with chronic and mental health conditions, yet the percentage of claims filed by these employees is small. Amid the rising cost of health cares, the ability to optimize and proactively manage the care of the few who cost the most is key.
The convenience, expansion of health care services and preventative health opportunities virtual care offers can help employers reduce costs and employees save on their premiums.
Optimizing and integrating virtual care as part of comprehensive insurance benefits can help employers retain employees, capture new talent and save on health care costs. Marsh McLennan Agency’s expert team helps companies of all shapes and sizes to determine the besidentify effective solutions in business insurance, employee health and benefits, retirement and private client insurance solutions for their needs. Connect with a Marsh McLennan Agency representative to explore how we can help your business.
