Cost Management, Personalization, and the Future Workforce
November 2024
In October, fifteen top brokers met in Las Vegas to tackle the employee benefits industry’s biggest challenges and shape its future.
As members of the RAD Collective, an influential network of forward-thinking brokers and consultants founded by Archetype to advance meaningful change in employee benefits, they developed three key strategies:
Figure 1: Feeling together in Las Vegas, Nevada
Close healthcare cost management gaps
Healthcare costs, particularly in pharmacy, continue to soar due to escalating drug costs, lawsuits, and an evolving market for high-cost therapies. Employers are looking for cost containment strategies to address rising drug prices, especially for GLP-1 drugs used in diabetes and weight management. The competition from biosimilars and the expiration of patents for specialty medications also create pressure.
Innovative approaches include forming direct pricing partnerships that promote transparency and affordability while rethinking traditional Average Wholesale Price (AWP) and rebate models. By integrating biosimilars and focusing on chronic disease management, employers can tackle these growing costs effectively.
Boost employee benefit engagement
Underutilization of existing benefits often results from information silos and inaccessible platforms. To increase engagement, employers should develop a “concierge-style” benefits experience that centralizes access to all resources – from insurance claims to coaching – making it easier for employees to navigate their options. Personalizing experiences based on individual data can further enhance engagement by providing intuitive interfaces that resonate with employees’ needs.
Adapt to generational workforce shifts
As millennials and Gen Z dominate the workforce, employers must rethink their benefit strategies.
Offering flexible options like Individual Coverage Health Reimbursement Arrangements (ICHRAs), allows employees to select health plans that fit their lifestyles. Additionally, providing support for mental health and caregiving needs is increasingly important as employees balance responsibilities across generations. Exploring transparent fiduciary service providers can help create a benefits ecosystem that aligns with both employer financial goals and employee preferences.
As we round out a strong year with the group, we are facing 2025 with strategies to better manage costs, increase benefit utilization, and meet the evolving needs of their workforce.
Interested in learning more about the RAD Collective? Check out the RAD Collective website.
About the RAD Collective:
The RAD Collective is an organization created by Archetype comprised of innovative and forward-thinking employee health benefits brokers and consultants. Over 60 top performing members from 30 different brokerages come together to work towards the goal of personal and collective growth. The community offers an environment to facilitate collaboration around industry-shaping innovation. The RAD Collective is led by Steve Herman and hosts various member events throughout the year to discuss important topics in the employee benefits industry.