Why should health innovation be part of your benefits strategy?

Employers provide health coverage for 180 million people in the US.1 Other industry stakeholders — health systems, health insurers and public entities — play significant roles in shaping the healthcare system. Now is the time for employers to work together as a stakeholder group and with other stakeholders to inform the creation of a higher quality, more transparent healthcare market for all.

Mercer’s Center for Health Innovation (CHI) works side by side with employers of all sizes and employer coalitions to solve big problems by bringing practical and relevant ideas to life. Our goal is a powerful one: to transform the market in meaningful ways.

Embracing innovation in health programs to combat risk  

How can innovative solutions address the mounting risks that employers face from accelerating health costs, higher employee expectations, lean HR staffs, and the threats that extreme climate poses to workforce health and well-being? A few of the trends we’re staying close to include:

Agentic AI advances traditional AI by autonomously making decisions and taking actions based on data analysis, leading to more efficient health benefit management, reduced administrative burdens, and personalized employee solutions.

As an emerging and rapidly evolving field, employers should consider partnering with vendors to pilot and explore various use cases of Agentic AI.

ICHRAs enable employers to reimburse employees for individual health insurance plans purchased through the ACA marketplace, offering flexibility and potential cost savings by tailoring coverage to different employee groups. 

However, implementing ICHRAs involves complexities such as setting ACA-compliant funding amounts based on location and plan costs, as well as providing support to help employees navigate the broader choices available. With potential enhancements under the new administration, staying informed about regulatory changes can help companies modernize their benefits strategy and expand employee options.

Pharmacy Benefit Administrators (PBAs) are similar to PBMs in managing prescription drug benefits but operate independently with a bring-your-own supplier model, offering a different approach to controlling costs. 

Understanding PBA contracts and performance metrics can help employers optimize health outcomes and achieve cost savings amid rising drug expenses.
With Mercer, employers can innovate to control healthcare costs, and positively reshape the employee experience. Mercer’s here to help employers disrupt the status quo and put more power into benefit buyers’ hands.
Kate Brown

Leader, Center for Health Innovation

How employers benefit from Mercer’s Center for Health Innovation

  • Employer-defined innovation pipeline:

    We’re constructing CHI’s future on an open architecture of ideas. We want to hear from you. Tell us what you need. We won’t rest until we discover an answer.

  • Partnerships without boundaries:

    Great work is happening in academia, think tanks and healthcare business groups. But if one discipline can’t translate its ideas to another, knowledge stays siloed. By building relationships between like-minded groups, we can co-innovate and advance healthcare together.

  • Dedicated team coast to coast:

    Mercer has a dedicated innovation team that stretches from coast to coast. Our insights aren’t limited to certain markets or communities. We work where you work, and we care about what you care about.

    Strong well-being strategies benefit employers, employees, and greater society.

Let's get started

Connect with our Center for Health Innovation team today.