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.