Global healthcare costs have risen, forcing employers to be strategic in delivering the point solutions their team needs. Here’s a breakdown of the state of the market and what employers can do to pivot.

Look, I've been in the healthcare point solution space for 27 years. That's nearly three decades navigating the ever shifting landscape of employer-sponsored healthcare. And let me tell you, as a guy in his 50’s with four boys (two still in school, two out and working), and a wife who's a marketing leader in healthcare herself, the rising cost of care isn't just a professional concern, it's personal. We live in Nashville, the self-proclaimed "Healthcare Capital," so this is our daily bread.

We all know the drill: self-funded employers are getting hammered. Global healthcare costs are projected to jump over 10% in 2025. You don't need to be an actuary to see that's unsustainable. The promise of point solutions — those shiny, digital first-care vendors — seemed like a lifeline. Primary care, mental health, fertility support, you name it, there's a point solution for it. And employers, understandably, jumped on board.

But here’s the thing, and I’m speaking from years of seeing this play out: the reality hasn’t matched the hype. We've got employers offering an average of nine point solutions, and yet, where's the significant cost reduction? Where's the tangible ROI? I'm not saying they're all bad, but the overall impact? Disappointing.

Why? Well, let's be honest. Employees often don't even know these solutions exist, leading to abysmal utilization. Then you've got the fragmentation issue, a patchwork of apps and platforms that just add to the confusion. And don't even get me started on data integration. Trying to make these systems talk to each other is like herding cats. Plus, measuring ROI? It’s a nightmare.

So, what's next? Here's what I see:

• Consolidation: The market's ripe for it. Smaller players getting absorbed by the big boys, offering more comprehensive solutions. Makes sense.
• Integration is Key: Point solutions need to play nice with existing systems. No more silos.
• AI and Personalization: This is where the real potential lies. Targeted interventions, tailored to individual needs.
• Outcomes-Based Pricing: If you want my attention, show me the results. Put your money where your mouth is.
• Holistic Wellbeing: It's not just about physical health. We need to address mental health, financial wellness, the whole nine yards.

But let's be real, relying solely on point solutions isn't the answer. We need to look at alternative strategies:

• Data Driven Decisions: Use analytics to identify potential high-risk claimants and get proactive.
• Prevention, Prevention, Prevention: Onsite screenings, early detection saves money and lives.
• Smart Funding: Captives, hybrid financing, stop loss - explore your options.
• Value-Based Care: Reward providers for outcomes, not just volume.
• Employee Education: Empower your people to make informed choices.

Look, after 27 years, I know there are no silver bullets. But one thing's for sure: self-funded employers need to be agile and open to new approaches. Point solutions can be a piece of the puzzle, but they're not the whole picture. We need to be smarter, more strategic, and more focused on delivering real value.