Keeping healthcare costs in check: Strategies for employers

The Power of Preventive Primary Care

Rising healthcare costs have employers and employees feeling the sting. In a 2024 study conducted by Arizent, 75% of HR and Benefits professionals reported an overall increase in claims costs over the past two years, including large increases in the price of prescription drugs, cancer care, and mental or behavioral healthcare.

Fortunately, research has also identified strategies for managing, and even reducing, healthcare costs. In the same survey, 80% of respondents saw their cost of benefits lower when employee health improved. In other words: Better health outcomes mean lower costs for everyone. How do you get there? The research points to the whole health benefits of preventive primary care.

Understanding Preventive Primary Care

Preventive care focuses on services like regular health screenings, vaccinations, and wellness checkups to prevent diseases before they develop.

Primary care is a healthcare model emphasizing accessible, coordinated, person-focused care for a patient’s whole life through a primary care physician. In addition to providing preventive care, primary care covers the management of chronic conditions, the diagnosis and treatment of existing conditions, and referrals to specialists.

When employees don’t have a primary care physician, they tend to rely more on emergency room or urgent care services, which cost more for everyone. Primary care programs have been shown to lead to 41% fewer ER visits and reduced medical and time costs.

Telehealth Adds Further Cost Savings to Primary Care

Primary care services can include access to in-person and virtual telehealth services, and the ability to easily book appointments near employees’ homes. Virtual primary care can be a game-changer for remote employees, and incentivizing its use helps ensure equitable access. In a study published in 2023 by JAMA Network Open, telehealth was associated with an average cost savings of between $147 and $186 per visit for patients with cancer. Especially for people living with chronic conditions, virtual appointments can mean less wait time in doctor’s offices and fewer hours spent traveling to and from them.

Improving Outcomes with Direct Primary Care

Direct primary care (DPC) takes primary care to the next level by making it easier and more affordable to access primary care. DPC gives patients greater access to their personal physicians with extended office visits and highly personalized, coordinated, comprehensive care management.

With a DPC model, patients pay a monthly or yearly fee directly to their physician or practice. Patients are then covered for a defined set of common primary care services like office visits, laboratory tests, and routine screenings.

In the Arizent survey, respondents who have used DPC indicated by a wide margin that it reduces costs for workers and businesses while improving employee productivity. It’s simple to use and employees are more likely to actually use it.

Managing Rising Healthcare Costs with Primary Care

As a modern healthcare model, preventive primary care can support employees’ long-term health and well-being while helping keep costs in check. Healthy employees lead to lower costs, and implementing a primary care benefit like One Medical is a predictable way to improve employee health.

Learn more about how One Medical can help your employees to stay healthy here.