Top Health Trends On the Horizon in 2024

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Soaring healthcare costs, drug pricing transparency, and the upcoming US presidential election are among the top areas to watch in healthcare the upcoming year, according to an analysis by Business Group on Health . The report identified a total of nine specific areas to monitor in the coming year. According to the article, each trend relates to a part of employer health and well-being strategy, which may be impacted by broader factors, including the economy, the ongoing impact of the COVID-19 pandemic, regulation and compliance, technology and innovation, global trends, legislative actions, and workforce trends.¹

First, it notes that health care costs are rising, with employers focusing more on costs and employee satisfaction. Heading into 2024, alarms have been raised for factors such as inflation, labor pressures on health care systems, concerns regarding provider shortages, increased mental health needs, missed and deferred preventive screenings that lead to more late-stage cancer diagnoses and worsening of chronic conditions.¹

“To further complicate these dynamics, employees’ health care experiences are impacted by fragmentation and growing concerns about affordability of medications and medical services,” the authors wrote. “Furthermore, the growing number of effective but prohibitively expensive cell and gene therapies, along with projected high demand for and widespread use of GLP-1s for managing obesity, are emerging as material cost drivers for self-funded employers today, with the use of these treatments increasing in the coming years.”

Other key trends include:

Prioritizing access to mental health and substance use disorders. The authors cited a 2023 Gallup Poll that found depression rates are at an all-time high.

“To improve access, employers will focus on using virtual mental health providers, among other measures,” the authors wrote. “Furthermore, about a third of employers will offer on-site mental health services at a reduced cost. To ensure that employees’ needs are being met, there will also be a growing movement to hold vendors and partners accountable for expanding access.”

Employers are increasing their focus on preventative efforts for cancer and other serious conditions. This includes the introduction of enhanced screening options and refined cancer patient navigation processes.

“Biomarker screenings, pre-treatment genetic testing and cell/gene therapies represent opportunity if deployed appropriately and effectively,” the authors wrote. “Employers may increasingly look to these alternatives as a way to improve experience and outcomes.”

Employers raising concerns regarding drug pricing sustainability and transparency. The report notes that in terms of costs, the pharmacy trend is outpacing the overall health care trend, especially for specialty drugs as recent innovations in drug development have caused costs to soar ever higher.

“Without necessary transformation within the pharmaceutical market, employer plans—and the broader health care system—may crumble under the weight of unsustainable drug pricing,” the authors wrote. “Employers are increasingly demanding greater prescription drug pricing transparency from all parties.”

Heightened expectations on partners to deliver. The report predicts that many employers will be more discerning regading their partnerships and place a greater emphasis on accountability from their partners to deliver on the cost of services.

Global employers will focus on improving consistency across countries while taking into account local regulations and cultural appropriateness. Employers are expected to explore leading edge mechanisms, including captive insurance arrangements, to develop consistent programs across different regions worldwide.

A greater focus on well-being as a fundamental aspect of workforce strategy.

The report notes that many employers have moved beyond just physical health to incorporate mental health, financial well-being, social health, community and job satisfaction in their overall well-being strategies.

“As employers look ahead, they will need to balance their continued commitment to well-being against mounting cost pressures, potentially by investing in the highest priority and most highly valued initiatives,” the report authors wrote.

The impact of the upcoming US presidential election on healthcare. The fate of the Affordable Care Act, taxation of employer benefit plans, prescription drug pricing, affordability, provider consolidation, reproductive rights, transgender care, mental health, and health equity are among the top issues that could be affected by the results of the 2024 election.

An emphasis on preemption for self-insured employers as the Employee Retirement Income Security Act turns 50. The report notes that preemption allows employers to curate a consistent and equitable benefits package for employees and their families regardless of work location.¹

“We live in a complex and interconnected world, and diverse factors impact employers as they seek to evolve benefit offerings for their workforces,” said Ellen Kelsay, president, CEO, Business Group on Health. “It will be increasingly important for their vendor partners to deliver in light of heightened expectations and accountability. Staying ahead of these trends will be paramount.”²

References

1. Trends to Watch in 2024. Business Group on Healthcare. November 28, 2023. Accessed December 4, 2023. https://www.businessgrouphealth.org/resources/trends-to-watch-in-2024

2. Rising Health Care Costs, Surging Prescription Drug Pricing, Acute Focus on Chronic Conditions Among 9 Trends to Watch in 2024, Says Business Group on Health. November 28, 2023. Accessed December 4, 2023. https://www.businessgrouphealth.org/en/newsroom/news-and-press-releases/press-releases/2024-trends-to-watch