Have integrated health benefits reached a tipping point?
According to the latest data from Anthem, integrated health care "has effectively become the norm.”
A new report on the integration of health care benefits finds that more than half of the companies surveyed are integrating benefits such as medical, pharmacy, dental, vision and supplemental health services.
The report by Anthem is the fourth edition of a biennial survey, which was first published in 2014. For 2020, the report finds that 56% of the 300 employers surveyed are engaging in integrated health benefit offerings. The report said this is a 10% increase from 2018. An additional 40% of surveyed companies are considering a more integrated approach.
Related: COVID sparks employer focus on integrated care model
The Anthem study said the growth of integrated health benefits has reached a tipping point. “Integrated health care (IHC) has been on an upward trajectory since 2016, the 2020 findings demonstrate that the trends we have been tracking over the past six years have now become reality: IHC has effectively become the norm among our core employer segments,” the report said.
A shared approach to data and management
The study describes IHC as a strategy that connects pharmacy, dental, vision and supplemental health to an employer’s main medical benefits plan. Supplemental services can include disability, absence management, and Employee Assistance Programs (EAPs)—with EAPs being the main portal to mental health services for employees in most cases.
The report noted that connecting and integrating these programs enables data to be shared among providers, which allows for better diagnosis and treatment, and also helps with prevention and detection of coverage gaps. The overall result is a “whole-person” approach to health care, Anthem officials said.
“IHC programs have been shown to increase employee engagement in well-being programs, lower health costs, improve health outcomes, simplify employers’ benefits portfolio, and deliver a better health care experience for both employers and employees,” the study said.
Interest in integration is growing
The survey showed that integration has become more common among employer plans over time: 33% of employers said they had integrated their benefits in 2016, that grew to 46% in 2018, and the number now stands at 56%—with an additional 23% of companies actively considering integration, according to the survey.
Size plays a role in the adoption of integration; larger companies are more likely to report they offer integrated benefits. In the survey, 64% of national employers reported integrating benefits, 53% of large employers had integrated benefits, but only 35% of small group respondents said they offered integrated benefits.
Resources and technology capabilities may be a reason that larger companies are more likely to move forward with integration: the study found that 92% of employers agreed digital capabilities are an important step in engaging employees in their health, while 79% of employers agreed a mobile app and digital technology is vital to delivering a personalized benefits experience. If access to the latest technological tools is a driver of success in integration, it may be that companies with more resources have an easier road to adopting an IHC approach.
IHC more common with vision and dental, but scope is growing
The survey has found over time that vision and dental benefits have always been the two areas most likely to be integrated with traditional medical benefits. However, the survey noted that other areas of care are gaining access to the IHC approach—in fact, a strong majority of respondents had expanded integrated benefits to other services.
This year’s survey was also the first to include measurements on EAP and supplemental health offerings; and found that both were being offered by a majority of employers as part of an IHC strategy.
With vision services, 75% of employers said this benefit was an integrated benefit, followed by pharmacy services at 73%, dental services at 67%, EAP at 64%, disability at 63%, and supplemental health at 62%.
Not surprisingly, integrating benefits seems to lead to consolidation of programs with one insurance carrier; the survey found that 71% of employers are integrating with a single insurance carrier, this number was up 11% since the last survey in 2018.
Ease of use a factor
Anthem officials said IHC increases efficiency, lowers costs, and improves coordination of care, but added that it also creates a better experience for employees.
“It’s encouraging that employers are realizing employee health and benefits can impact their company beyond the associated health care costs, and can really speak to the bottom line,” said Jeff Spahr, vice president, Specialty Business Development, Anthem. “Offering employees a cost effective solution that integrates medical care with pharmacy, dental, vision, disability and other benefits programs will provide them with the personalized support they need to improve their overall wellbeing, satisfaction and productivity.”
Read more: