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Combating rising premiums by addressing social determinants of health

Acknowledging and addressing SDOH can help control premiums while fostering a happier and healthier work environment.

By Trenor Williams, MD | January 10, 2025 at 09:09 AM

Health insurance premiums are up by 7% on average from a year ago and nearly 25% over the past five years. As employers and their benefits advisors search for solutions to help get unsustainable costs under control, their first inclination is often to cut supplemental benefits. While these can be viewed as non-essential perks, these offerings address coverage gaps surrounding the non-clinical factors that influence an individual’s health care journey. Instead of reducing the services that help keep their people healthy, organizations should optimize their benefits programs by investing in what drives 80% of health costs and outcomes: the social determinants of health (SDOH).

These socioeconomic challenges, which include food insecurity, housing and financial instability, and transportation barriers, dramatically impact a person’s ability to maintain optimal health and access health care. In order for employers to truly start bending the cost curve on health coverage, it is critical for them to understand what these social risk factors look like for their employees and the communities in which they live. Business and benefits leaders that acknowledge and address SDOH within their workforce can help control premiums while fostering a happier and healthier work environment, reducing absenteeism and improving presenteeism among their employees.

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