At any company, data is one of the keys to building a successful benefits strategy. But data alone isn’t enough – it’s how you use it that makes the difference. The right data analysis combined with the right benefits broker will put you ahead of the game. The first quarter of a new plan year is an excellent time to review the outcomes of open enrollment decisions and see how they compare to what you had forecasted for the upcoming year.
Conducting a post-open enrollment analysis is one of the best ways to chart your path, help you analyze your plan’s performance and provide customized recommendations to guide your strategy, track progress, and measure results.
Data analytics will help you identify what’s driving costs in your health plan and allow you to create an action plan to address them. Key trends we’re seeing include utilization management, specialty pharmacy, biosimilars, and the growing number of chronic conditions.
One major trend affecting many employers is the rise in popularity of GLP-1 drugs like Ozempic, Mounjaro, and Wegovy. These drugs have been around for nearly a decade, primarily for diabetes management. But in the last 18 months, they’ve become much more popular for weight loss. Manufacturers are also exploring their use for other conditions like heart disease and dementia.
With these new indications on the horizon, it’s important for your company to have a plan in place. Right now, most of these medications cost over $1,000 per prescription, and employer costs for this drug class have increased by more than 60% in the past year. These drugs now account for about 5% of all medical and pharmacy costs on average. Companies that are lacking access to data often struggle to make informed decisions about covering these drugs. But by analyzing historical information alongside workforce demographics, companies can make decisions that best suit their needs.
Another important area of focus is mental health benefits. Many employers want to understand why some employees may be facing challenges in accessing these resources. Increasing utilization in this area can lead to more productive and fulfilled employees. By analyzing who is using the benefits – and who is not – you can create a strategy to better support those in need. Using your data in the right way can help you answer these questions so you can focus on implementing solutions that will truly make a difference.
Stop guessing whether or not your benefits plan is working. Let your data help you make the right decisions so you can achieve your financial and employee engagement goals. Make your benefits package targeted and meaningful to your workforce!
Nick Pearce
Vice President
EB Insights & Analytics Practice Leader
