American workers are currently facing a shifting labor market: with job openings at a four-year low, employees are both seeking stability and bringing an increased level of discernment to potential job changes. But one thing remains consistent. Even in this environment of heightened economic uncertainty, a critical factor determining whether employees stay or go remains the same: healthcare.
70% of employees say health insurance is the most important benefit in their decision to stay in their job or seek a new one. Successful employers must provide benefits plans that are not only competitive, but offer demonstrably improved access, affordability – and most importantly – health outcomes. In today’s environment, health benefits and health insurance options are the most important levers employers can pull to influence employee engagement and retention.
This means there is a clear path forward for employers both large and small – and that path is value-based care. This outcomes-focused approach is not only economically feasible, but it is also the key to creating employee health plans that lead to greater employee confidence and satisfaction. In simpler terms, value-based care is better for employees and their families, which in turn creates stability for employers and the economy at large.
The Commonwealth Fund defines value-based care this way: “Value-based care ties the amount health care providers earn for their services to the results they deliver for their patients, such as the quality, equity, and cost of care. Through financial incentives and other methods, value-based care programs aim to hold providers more accountable for improving patient outcomes while also giving them greater flexibility to deliver the right care at the right time.”
For employers to offer effective, accessible and affordable value-based care for their employees, they must address the four components below.
Utilize your own data to develop personalized healthcare plans
Both employers and providers must understand and address the distinct needs of each patient by creating individualized treatment plans that consider factors like race, ethnicity, and social determinants of health (SDOH). Tailoring care in this way helps drive better health outcomes. Employers can analyze aggregated data to pinpoint high-risk patients and foresee potential complications, allowing them to implement targeted strategies that improve health outcomes.
Offer effective preventive care programs
Employers should prioritize provider networks that emphasize preventive care, effective management of chronic conditions, and patient-centered strategies that enhance overall well-being. To maximize care effectiveness, employers should offer customized health plans tailored to individual employee needs. In addition to this, building a culture of wellness within the workplace is key — actively engaging employees in their health journey is proven to create sustainable shifts in health outcomes. Incentives for participation in wellness initiatives, health screenings, and lifestyle improvement programs also encourage healthier habits and long-term commitment to well-being.
Address benefits literacy
According to a 2024 Health Equity survey, prioritizing benefits literacy is essential, as more than a quarter (26%) of surveyed working employees said choosing a health plan causes them to feel stress and lack confidence about their plan choice. It is imperative that employers offer frequent, accessible education and training for employees on their benefits options. Health literacy and benefits literacy often overlap, and both are proven to drive greater use of preventive care, catalyze improved lifestyle decision-making, and decrease both hospitalizations and use of emergency care.
Ensure price transparency
Employees deserve to know the costs of procedures, treatments, and services upfront, which allows them to make choices that align with both their health needs and financial situation. This price transparency helps employers design smarter health benefits plans and steer employees toward high-value care to manage overall healthcare spending more effectively. Additionally, when providers are held accountable for their costs, it creates an incentive to improve efficiency and offer more affordable care.
Across the healthcare landscape, the most effective way to achieve transformation is for employers to join forces in the marketplace to accelerate the change from fee-for-service medicine to payment for value. This allows us to shift from a system that is focused on treating disease to one that emphasizes health and prevention of disease as well as superior care for patients. In turn, value-based care translates to greater employee satisfaction and retention alongside the most important, personal impact – improved health and well-being for employees and their families.
Photo: Philippe TURPIN, Getty Images
Robert E. Andrews is the Chief Executive Officer of the Health Transformation Alliance (HTA), an original author of the Affordable Care Act, and a former member of Congress. As CEO of the HTA, Andrews oversees the strategic direction of 70+ major corporations that have come together in an alliance to do one thing: fix our broken healthcare system. Formed by four founding members in September 2015, the HTA member companies collectively are responsible for more than 4 million employees in the United States with an annual healthcare spend of $27+ billion. Through Andrews’ leadership, the HTA has launched value-driven solutions specifically designed to improve patient care and economic value through world-class data and analytics, pathbreaking pharmaceutical solutions, high-quality medical networks, and robust consumer engagement initiatives. To date, the cooperative has saved its member companies well over $2 billion in healthcare costs.
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