The growing recognition of health equity is reshaping how employers approach their benefits strategies. A recent analysis highlights that racial and ethnic health disparities in the United States cost the economy hundreds of billions of dollars annually. Moreover, untreated mental health issues, such as depression and anxiety, contribute an additional $1 trillion in lost productivity worldwide. These stark figures underscore the urgent need for organizations to rethink their approach to employee health and inclusivity.
In her career, a former actuary from Brazil transitioned into consulting and now oversees benefits for over 350,000 employees across more than 100 countries. She emphasizes that awareness of health inequities is crucial for both business performance and employee well-being. By viewing health equity not merely as a side initiative but as a fundamental aspect of sustainable benefits, companies can significantly impact their bottom lines.
The importance of inclusive benefits is clear. By adopting a “Benefits Bill of Rights,” organizations can ensure employees have access to affordable care, timely assistance, and clear communication. This foundational document can be integrated into contract clauses, making equity a measurable goal. Brokers and consultants can assist in identifying coverage gaps and setting design standards across various markets.
Identifying Barriers to Inclusion
Many barriers to health equity are often hidden within complex policies and definitions. For instance, a marriage leave policy requiring legal certificates in jurisdictions without equal marriage laws poses an exclusionary hurdle. A comprehensive “gray-zone” audit can help organizations identify such obstacles and create more inclusive definitions of family, thereby improving employee engagement.
Prior authorization policies can also obstruct access to needed care. According to a recent survey by the American Medical Association, over 90% of physicians reported that prior authorization delays access to essential services. Patients managing chronic conditions, like diabetes, frequently face unnecessary bureaucratic hurdles that can lead to serious health consequences. Simplifying these processes can significantly enhance patient care and reduce administrative burdens.
Creating a Culture of Trust
Establishing real-time feedback mechanisms is vital to understanding employee experiences with their benefits. Continuous monitoring of access friction, delays in care, and overall trust in the system can provide actionable insights. Many employees dealing with chronic conditions may refrain from disclosing their health challenges, not out of secrecy but due to a lack of a supportive environment. By fostering trust, employers can create systems that encourage openness and accessibility.
Collective action can also drive market changes. In many countries, certain benefit plans still default to excluding critical areas like behavioral health or gender-affirming care. While no single employer can alter national regulations, collaboration through brokers, pooling networks, and captives can advocate for more inclusive standards. This approach also enables organizations to stabilize costs while ensuring equitable access to care.
To achieve meaningful change, organizations need to prioritize key metrics. Monitoring clinical outcomes, tracking return-to-work rates, and assessing employee trust are essential components of an effective benefits strategy. Tying these metrics to vendor scorecards and using dividends for equity-focused improvements can help sustain momentum in promoting health equity.
Organizations should view this journey as a phased process rather than an immediate overhaul. Initial steps might involve publishing the Benefits Bill of Rights and conducting audits with key stakeholders, including human resources and diversity leaders. As systems evolve, it is crucial to model captive or pooling options that can fund necessary but currently excluded coverage areas.
The ongoing pressures of medical inflation and declining employee trust highlight the importance of inclusive benefit designs. By prioritizing equity, companies can foster a healthier workforce, encourage preventive care, and shift from reactive cost management to proactive value creation. Ultimately, investing in health equity is not only an ethical choice but also a sound financial strategy, benefiting both employees and organizations alike.
As stakeholders consider the complexities of aligning health equity with business objectives, they are encouraged to reflect on their current practices. Building a coalition of partners who are willing to challenge the status quo can pave the way for meaningful progress. The focus should now shift towards actionable strategies: how to close coverage gaps, why these changes matter, and how to measure success.
