The COVID-19 pandemic significantly changed how people engage with healthcare, leading to the rise of virtual visits, delayed care,  and a greater emphasis on mental health. Now, five years later, it’s essential to understand how healthcare utilization has evolved and what it means for employers.

However, one critical factor that often gets overlooked is the baseline year you’re using for comparison. For example, if you’re looking at trends starting in 2020 or 2021—when many individuals deferred care—your current healthcare costs may appear to have spiked. On the other hand, if your organization experienced a surge in COVID-related claims during those years, the baseline might be unusually high, making recent years look more stable or even like a cost reduction. The year you choose as your starting point dramatically affects how you interpret cost trends and utilization patterns.

These shifts have real business implications. Employers must adapt their benefits offerings to meet changing employee needs while managing the financial impact of rising healthcare costs.

The Shift to Telehealth and Digital Health Solutions

The pandemic increased the use of telemedicine and virtual care for everyone. What was once considered a novelty has now become a standard option for people seeking medical advice. Employees, who have grown accustomed to accessing healthcare remotely, expect these options to be a permanent part of their care routines.

In response, many employers have incorporated telehealth and digital health solutions into their benefits packages. This approach provides employees with accessible and efficient care while allowing employers to manage healthcare costs and enhance employee satisfaction.

Mental Health and Wellness as a Priority

The pandemic highlighted the urgent need for mental health support, leading to a surge in demand for resources addressing stress, anxiety, and burnout. Prioritizing mental health benefits organizations by reducing absenteeism, lowering turnover rates, and enhancing productivity, resulting in more engaged and resilient employees. Employers have implemented initiatives like Employee Assistance Programs (EAPs), mindfulness programs, and stress management workshops to create a supportive work environment.

Preventative Care and Chronic Disease Management

During the pandemic, many people delayed routine medical appointments, leading to a backlog of undiagnosed conditions and untreated chronic diseases. In response, employers are implementing proactive health strategies. These include offering onsite wellness programs, conducting health assessments, and providing financial incentives for regular screenings and preventive care.

Rising Healthcare Costs and the Role of Employers

Healthcare inflation is straining employer-sponsored plans as premiums, deductibles, and out-of-pocket costs rise. This leads to financial pressures for businesses and affordability challenges for employees. Some employers opt for self-insurance, allowing them to handle health expenses and lower premiums directly. Others are embracing value-based models, prioritizing high-quality care at reduced costs, supported by organizations like Conifer Solutions.

Employee Expectations and the Future of Workplace Health Benefits

As employees continue to prioritize health and well-being, there’s a growing desire for benefits that feel personal and meaningful. While digital tools are part of the conversation, the real impact often comes from returning to the basics, connecting with people directly. In a world where so much has become virtual, employees are hungry for human interaction and genuine support when it comes to their health.

Employers who focus on high-touch, personalized strategies, especially for high-risk individuals, can drive better outcomes. These efforts include direct outreach, personalized care navigation, and meaningful communication that builds trust and encourages proactive healthcare engagement. At the same time, these strategies also benefit low utilizers of care, helping identify hidden risks early and encouraging them to engage with preventive and wellness services they might otherwise overlook.

As healthcare consumption continues to evolve, employers must reassess their benefits strategies to meet changing expectations and support employee well-being and cost-effectiveness. To optimize your benefits offerings, consider partnering with a population health solution like Conifer Health to drive smarter, data-driven decisions and improve healthcare outcomes for your workforce.