Cancer has overtaken musculoskeletal conditions as large employers' biggest driver of healthcare costs, according to Business Group on Health’s "2023 Large Employers’ Health Care Strategy and Plan Design Survey."
Business Group on Health surveyed 135 employers across various sectors that together cover more than 18 million people between May 31 and July 13, according to the Aug. 23 report.
Six things to know:
1. Cancer, musculoskeletal conditions and cardiovascular disease are the leading drivers of healthcare costs. These three conditions were also the leading drivers in last year's survey.
2. Thirteen percent of employers said they have seen more late-stage cancers and another 44 percent anticipate seeing an increase in the future, likely due to delays in care related to the COVID-19 pandemic.
3. Large employers saw a medical healthcare cost increase of 8.2 percent in 2021 after experiencing no increase in actual healthcare costs from 2019 to 2020.
4. Employers expect to cover 82 percent of the cost of employee healthcare coverage in 2022, up from 80 percent last year.
5. Nearly all large employers surveyed (99 percent) said they were concerned about prescription drug trends. Prescription drugs accounted for a median of 21 percent of employers' healthcare costs in 2021. More than half of pharmacy spending went toward speciality medications.
6. Employers said long-term mental health issues — both observed and anticipated — are the leading health-related impact of the pandemic.
Read the full report here.