Tactics for taking control of rising health care costs
By Allstate Benefits
Last updated: October 2024
It's a fact of life. As time goes on, everything gets more expensive – and health care is no exception. The good news is, there are ways employers can take control of costs and keep them in check.
Health care is complex and has lots of moving parts. Those parts act to drive costs – and savings.
1. Pharmaceuticals
Statistics compiled by SingleCare show that about 66% of U.S. adults take a prescription drug. The U.S. has the highest drug spending per capita, which is mostly due to higher drug costs. And, chronic diseases such as diabetes, cancer, autoimmune disorders, respiratory diseases and mental health disorders account for the most pharmaceutical spending.
2. Hospital costs and physician fees
Milliman cites macroeconomic forces – such as labor market shortages and supply chain issues – as a major reason for increases in hospital costs and physician fees. These forces drive up the cost of salaries for health care workers and everything needed to treat a patient – from surgical instruments and medical electronics to implants and drugs.
3. Chronic conditions
The American Action Forum defines a chronic disease as a condition that persists for at least a year and requires ongoing medical attention or limits daily activity. The prevalence and cost of these conditions – which include heart disease, cancer, lung disease, stroke, and diabetes – have been growing in the U.S.
Take control of your health care spending
Allstate Benefits offers programs and benefits specifically designed to help reduce your health care costs. Check out these money-saving features, which are available with our portfolio of health plan designs:
Good news for prescription pricing
Our Self-Funded Program includes the services of Cigna Pharmacy Management. Cigna offers innovative products and pharmaceutical expertise, which helps self-funded health plans improve clinical outcomes. They also leverage large purchasing power to negotiate affordable pricing, providing an average savings of three percent per member, per month.
For groups with more than 50 enrolled employees, Allstate Benefits also offers a specialty drug program options designed to result in substantial savings for both plan members and employers.
Networks save money on office visits and hospital services
Whether choosing a self-funded plan design or a fully insured plan through Allstate Benefits, there are options to save big by using providers in one of our local or broad provider networks.
Online tools that help members find quality care at a fair price
Our easy-to-use pricing transparency and navigation tools empower members to choose the best care for them.
Offer virtual care services that provide cost-effective care
Add telemedicine services¹ to your self-funded plan. Virtual services provide convenience, easy access and cost savings. We offer virtual Urgent Care for common illnesses like pink eye, asthma, and colds as well as well as virtual Talk Therapy² for adults and child as young as 10 years old.
In addition, our virtual musculoskeletal care program through Vori Health provides a personalized team that diagnoses, treats and manages these conditions, avoiding unnecessary and costly surgeries.
Wellness and cancer support programs promote healthy choices – and save money
Allstate Benefits offers a comprehensive approach to wellness. Our program through Vitality Wellness incorporates elements that are scientifically and clinically proven to have the greatest impact on wellness, saving on health care costs for both plan members and their employers.
We also offer an education and support program for members with a cancer diagnosis. Our program through Osara Health is designed by oncologists, helps members take control of their cancer care and achieve better outcomes, helping them get back to their lives and work faster.
Contact a sales representative to learn more about how Allstate Benefits can help you take control of your health care spending.