Balancing Cost and Sustainability
By Alliant Employee Benefits / December 19, 2023
Global health plans will feel the squeeze of expected medical premium increases in 2024. How are employers confronting affordability while safeguarding employee benefits?
Finding ways to reign in rising healthcare costs while keeping benefits affordable remains a critical trend as we approach 2024. Amid the current economic environment, multinational employers must strike a balance between responsible spending on their benefits programs and accountability to their people to ensure long-term growth and sustainability.
The Juggling Act
Four significant factors pose a threat to the continued satisfaction, retention, and engagement of employees, as well as global employers’ cost management strategies:
Medical trend rates are predicted changes to health plans’ per capita claims costs and these rates are expected to increase around the world. Factors such as price inflation, increased use of care and services, and new medical technologies influence medical trend.
Data Privacy and Security
Ensuring compliance with data privacy legislation is a top priority for multinational employers, second only to spend. With this focus on data privacy, global employers may find it challenging to explore new vendors who can offer cost-effective solutions. The process can be rigorous and overwhelming, leading companies to feel stuck with their current vendors and exposed to possible cost increases.
Long-term Consequences of COVID-19
Certain markets are still feeling the effects of COVID-19 claims. Catch-up claims are continuing for services postponed during lockdown. In addition, increases in severe claims due to delayed detection are impacting renewal rates around the globe.
Tight Labor Market
During tough economic times, companies may consider reducing their employee benefits offerings to reach their financial goals. However, it's important to remember that changes to benefits can negatively impact employees' financial outlook and overall job satisfaction. While competitive benefits are still crucial for attracting and retaining employees, companies must find a balance between their fiscal goals and the needs of employees.
How are employers going to mitigate cost drivers that seem out of their control?
Mitigating these factors requires diligence and informed decision-making. Alliant proposes two key steps to ensure sustainable business growth, successfully striking the right balance between the needs of employees and cost management.
To learn more about Alliant’s approach to the anticipated trends of 2024 through the lens of global benefits experts, download Alliant’s 2024 Global Health Review Report.
About Alliant Insurance Services
Alliant Insurance Services is one of the nation's leading insurance brokerage firms and one of the top 10 largest US brokers, helping clients meet challenges in risk management, property and casualty insurance, and domestic and global benefits. With offices nationwide, Alliant offers a comprehensive portfolio of innovative and forward-thinking services to businesses in a wide range of industries.
This document is designed to provide general information and guidance. This document is provided on an “as is” basis without any warranty of any kind. Alliant Insurance Services disclaims any liability for any loss or damage from reliance on this document.
News & Resources
2024 Global Health Review - Medical Trends
Employee medical costs have a huge potential to impact the bottom line. If your company has global locations, insight into countries’ medical trends can help to contain and predict premium spend.
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