Employers ‘hungry for ideas’ to hold down health claims without cutting coverage

Employers are worried about the rising cost of health coverage, and they are hungry for ideas to hold claims down without eliminating benefits, according to J. Powell Brown, the chief executive officer of Brown & Brown.

Brown & Brown, an insurance and benefits advisor, is getting questions about ideas for managing the costs of claims for high-cost claimants, coping with the high cost of very expensive “specialty” drugs and improving “population health” efforts, such as efforts to address conditions such as obesity and high blood pressure, Brown said.

Executives noted that Brown & Brown is often paid a flat fee per enrollee for group health plans in some states and does not benefit in those states when the cost of coverage rises.
In some plans, Brown said, employers are trying to maintain the breadth of coverage by cutting out certain high-cost items, such as coverage of Wegovy and other GLP-1 agonists for weight loss.

See also: 7 ways employers can help limit fast-rising healthcare costs

“People are trying to maintain quality coverage for their employees,” Brown said. “That said, they can only bear a certain amount of increase. And so, we are constantly and consistently talking with our customers and prospects about creative ways to deliver value to their employees, but to help manage their cost.”

Depending on the industry, some companies are looking to hire while others are flat,” Brown said.

Brown & Brown held the conference call the go over earnings for the third quarter with securities analysts.

The Daytona Beach, Fla.-based company streamed the call live and has posted a recording of the call on its website.

This article was originally published on BenefitsPRO, a sister site of HR Executive. For more content like this delivered to your inbox, sign up for BenefitsPRO newsletters here.