The time to double down on health equity is now 

In the dynamic world of public health, there is a compelling call to action for employers: To prioritize assessing and reformulating healthcare benefits with a focus on Health Equity. The stark disparities in population health – highlighted by the global pandemic and exacerbated by climate change and other factors – pose a daunting challenge. But that’s not a reason to put off action. We believe every employer can and should have a comprehensive strategy for addressing the unique health needs of their workforce, particularly the most vulnerable groups – different races and ethnicities, veterans, the LGBTQ+ community, people with disabilities, rural populations, and more.

Importance of inclusive benefits

There are risks to overlooking inclusivity in workplace benefits and the health disparities that can result, within historically marginalized populations in particular. Employees who feel undervalued or unsupported are less likely to be fully present and engaged in their work, contributing to higher rates of absenteeism and lower productivity. In today’s diverse and socially conscious business environment, reputational harm is another risk to consider. When benefits are not inclusive it can be more challenging to attract and retain top talent, particularly from diverse backgrounds – and a less diverse and innovative workforce can hinder an organization’s ability to adapt and thrive in a competitive market.

On the other hand, employers who prioritize Health Equity stand to gain significant benefits, including potential cost savings. Studies have shown that when health disparities are reduced, there is a corresponding decrease in healthcare costs due to improved health outcomes and reduced need for more extensive medical interventions. The cost of not addressing disparities is significant – the National Institutes of Health estimates that the economic burden of racial/ethnic health disparities is more than $450 billion dollars.  US companies are coming to realize that investing in Health Equity is not only as a moral imperative but also as a key driver of business success.

Your health equity strategy – getting started and moving forward

Traditional benefits benchmarking has left gaps in access to care for many vulnerable populations. It’s time for employers to take a new approach – critically evaluating their existing healthcare policies to identify systemic biases contributing to health inequities. With that information, you can build a plan to close gaps in benefit offerings and access to care.

 Understand your current state. Do you have the data needed to uncover disparities occurring in your population? The evaluation process requires looking for differences in healthcare utilization and outcomes based on employee demographics, socio-economic backgrounds, and other social determinants of health. Mercer’s recent National Survey of Employer-Sponsored Health Benefits found that 38% of the nation’s largest companies (those with 20,000 or more employees) are collecting employee demographic data to identify members of specific groups in their reporting, and about 35% are requesting health equity reporting from their health plans.

Effective targeted communication strategies are also pivotal in this transformation. Employers continually face challenges effectively communicating healthcare benefits to diverse employee groups. Customizing communication to address the specific needs and concerns of different employee segments, particularly the vulnerable or historically marginalized, can significantly enhance the impact of healthcare benefits.

Commit to culturally competent care. Well over a fourth of the largest employers say they are pushing their health plans to provide more diverse and culturally competent providers in plan networks. Hold your health plan accountable for ensuring your plan members have access to providers they are comfortable with. As an important recent study has demonstrated, health outcomes are better when Black patients are treated by Black physicians.

Adopt a more holistic approach to health benefits. Integrate an understanding of social determinants of health – factors like access to healthy food, safe housing, and clean environments – into the design and delivery of benefits. An example of this could be partnering with community-based organizations to provide greater resources for members. More than one in ten very large employers (11%) have taken this approach.  

By embracing the challenge of health disparities, employers can pave the way for a more equitable, healthy, and successful future for their organizations and their employees. The journey towards Health Equity is undoubtedly complex and multifaceted, but it truly does start with a single step – so don’t be afraid to begin. When all employers join in, the benefits will be profound – healthier employees, stronger communities, and a more just society.

This post is one in a series of Seven breakthrough benefit strategies to explore this year.