Benefits leaders are taking a closer look at their highest areas of spend, with a particular focus on pharmacy. While most employers do not view surgery as a distinct category, surgical costs account for 20% of employer health care spending and are projected to increase by 15%. In this webinar, we discussed why you should consider assessing your claims data in a new light and how an inclusive Center of Excellence (COE) solution can help you tackle this growing category while significantly reducing costs.
Key takeaways:
– Savings Opportunity: Surgery costs, which account for 20% of total spending and are projected to rise by 15% annually, haven’t been as closely examined as pharmacy costs.
– High Expenses: Self-insured employers are paying 250% of Medicare prices for the same procedures. Costs can vary by up to 300% across MSAs, with minimal correlation to quality or cost of living.
– Reducing Costs: To cut surgery expenses, consider minimizing unnecessary procedures, ensuring access to top-quality surgeons with low complication rates, and exploring Centers of Excellence that negotiate lower rates.
– Reinvesting Savings: ArcBest and Phillips 66 saved $1.8M and $2.3M, respectively, using SurgeryPlus (now Lantern). These savings helped manage premium costs and fund additional employee benefits like expanded PTO and financial wellness programs.
Learn more about how SurgeryPlus (now Lantern) saved ArcBest more than $1.8M.
