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How AI Can Help Reduce Rising Health Care Costs
How AI Can Help Reduce Rising Health Care Costs

The average annual premium for employer-sponsored health insurance has increased by more than 20% since 2010. Here's how AI can help.

Cam Garriepy avatar
Written by Cam Garriepy
Updated over a week ago

Rising Health Care Costs Are Putting A Strain On Employees' Budgets

The average annual premium for employer-sponsored health insurance has increased by more than 20% since 2010 while out-of-pocket costs for employees continue to rise.

There are a number of factors which contribute to rising healthcare costs in the US.

  • Increasing demand for health care services driven by the aging population and the rise of chronic diseases

  • Increasing cost of prescription drugs

  • High administrative costs due to a lack of standardization across health care organizations

  • Unbalanced approaches to health care utilization, such as comparatively high rates of expensive medical imaging

These factors add up to major problems for employees. Necessary health care services are difficult to afford, but there are steps employees can take to try to reduce their health care costs.

  • Enroll in a high-deductible health plan (HDHP): HDHPs have lower monthly premiums, but higher deductibles. Yes, employees have to pay more out of pocket for health care services before their insurance kicks in, but HDHPs can be a good option for employees who are healthy and don't need a lot of health care services.

  • Enroll in an HSA: They allow more control over health care spending. Use HSA funds to pay for any qualified medical expense, regardless of whether or not the expense is covered by a health insurance plan. This can help save money on costs by avoiding high copayments and deductibles.

  • Use their health insurance wisely: This means going to the doctor for preventive care, such as annual checkups and screenings. Preventive care can help to identify health problems early on, when they are easier to treat. It can also help to prevent chronic diseases.

  • Make lifestyle changes, such as eating a healthy diet, exercising regularly, and quitting smoking. These changes can help to improve employees' overall health and well-being, and help to reduce their risk of developing chronic diseases.

Artificial intelligence (AI) can help employees make better benefit choices in a number of ways:

  • By identifying which benefits are most popular and which benefits are not being used. With that information, HR can make changes to the benefits program to improve its effectiveness.

  • By helping employees track their health care usage

  • By personalizing recommendations for employees based on their individual needs and circumstances.

AI-driven decision support solutions like SelectSmart™ and SAVVI Financial Wellness can help employees to be more informed about their benefits and make benefits decisions that align with their financial wellness and goals. Click here to schedule a 15 minute chat now to discuss how SAVVI might work for you. Or simply call us at 781-583-7017 or email us

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