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Nearly 90% of Employers to Make Changes to Health Benefits Vendors

Analysis  |  By Jay Asser  
   February 10, 2023

Organizations will add, enhance, or end services to address employee experiences and benefits.

Almost nine in 10 employers plan to change health and wellbeing vendor partnerships in the next two years, according to a survey from Willis Towers Watson (WTW).

The survey fielded responses from 232 U.S. employers—with three million workers—in November 2022 and found that organizations will adjust their offerings in the near future to address employee needs.

Most respondents (88%) said they are planning to make changes to their vendors either this year or next, which includes adding, enhancing, or ending certain services. Changes may also include working with a different vendor.

"High-performing health and wellbeing vendors are now vital to employers," Courtney Stubblefield, senior director of WTW, stated. "They have become a critical component of competitive benefit and wellbeing programs and strategic to their portfolio."

"However, in an effort to meet the needs of their employees and improve worker health, employers are taking a close look at the value and cost savings their vendors promise. What’s more, they are ready to make changes as needed."

Respondents ranked their top areas of focus for vendor solutions over the next two years, with mental health finishing first, general wellbeing coming in second, and financial wellbeing slotting fifth.

Of those surveyed that provide mental health solutions, 37% said they are planning to make changes to their mental health services in the next two years, including employee assistance programs and other clinical and pharmacy solutions. Nearly a quarter (24%) made changes in 2022.

More than half of the respondents (55%) that offer wellbeing services said they are planning to make changes in the next two years, while 12% already made changes last year.

Just over four in 10 employers (42%) are planning to make changes to their point solutions for clinical conditions like diabetes and musculoskeletal disease over the next two years, with 24% having made changes in 2022.

When it comes to navigation and advocacy programs, 40% of employers are set to make changes to areas such as clinical guidance and expert medical opinion. More than one in 10 respondents made changes in 2022.

Finally, 43% of employers are aiming to change their digital platforms, including digital hubs and health information portals, building on the 7% that already did last year.

"Companies prioritize ROI but need a broader definition of ROI that includes choices based on driving quality, filling the gap in core offerings and lowering cost," said Regina Ihrke, WTW senior director."

"At the same time, they should evaluate if the solution is working, how to optimize current partners and whether they need to embrace innovation in the market. This balanced approach will offer a better experience for their employees."

Jay Asser is the contributing editor for strategy at HealthLeaders. 


KEY TAKEAWAYS

Willis Towers Watson surveyed 232 U.S. employers to identify upcoming trends with health and wellbeing vendor partnerships.

Nearly nine in 10 employers (88%) said they plan to make changes to their vendors either this year or next to modify services offered.

Respondents ranked mental health as the top area of focus for vendor solutions, with general wellbeing in second, and financial wellbeing in fifth.


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