Conifer Health Solutions
Conifer Health Solutions
Healthcare costs are consuming an increasingly large share of household budgets. A RAND study found that payments to finance healthcare averaged $9,393 per person, or nearly 19% of average household income. For many families, that means more than a line item on a paycheck. It shapes the way people decide when to see a doctor, whether to fill a prescription, and how secure they feel in their jobs. A benefit once seen as a cornerstone of compensation is now a source of financial stress. For employers and leaders in human resources, finance, and benefits, that stress is not abstract. It shows up in the choices employees make and in the stability of the workforce itself.
Premiums vs. Wages
The cost of employer-sponsored health coverage has moved faster than wages for years. KFF reported that family premiums climbed another 7 percent in 2024, averaging more than $25,000, with the employer paying for 75% of the premium and employers absorbing more of the cost increase due to the tight labor market. The previous year showed the same increase, while most households experienced only modest gains in income. Instead of lifting household income, annual raises are quickly absorbed by insurance deductions. For employers, the effect is no less important. As contributions rise, employers face tougher choices regarding wage growth, and workers see less improvement in their overall compensation.
Out-of-Pocket Impact
Premiums tell only part of the story. Families feel the added strain in deductibles, co-pays, and coinsurance, each one a cost that comes with the basic act of seeking care. For some households, an unexpected emergency visit or diagnostic scan will throw the entire month’s budget off balance. Protections have reduced the worst of surprise billing, yet the risk remains, and the worry that comes with it never fully disappears. Faced with that uncertainty, employees hesitate, and over time, those decisions turn into larger problems. Small hesitations accumulate, and by the time care is sought, conditions are harder and more expensive to treat. Employers see the result through steeper claims and the strain of a workforce that is less healthy and less present.
Employee Wellbeing
Financial pressure tied to healthcare does not stop at the bank account. It spills into mental health, sleep, and day-to-day focus. Medical debt creates an ongoing strain that influences both personal well-being and workplace performance. Some workers avoid health screenings or even essential health visits, not because they see no value in them, but because they worry about the cost of managing a new diagnosis. That cycle adds more pressure and makes it harder to maintain good health. The effects and financial concerns overshadow the culture employers have worked to build.
Broader Implications
The burden is not shared evenly. Employees on the lower end of the wage scale give up a larger share of income to premiums and out-of-pocket costs, leaving little margin for other necessities. To conserve both money and limited paid time off, many hold back on routine care or cancel appointments. The result is clear: illnesses progress, treatment becomes more complex, and cost of the eventual medical claims increase. Mental health is shaped by the same financial pressures as physical care. When counseling is delayed to avoid added expense, concerns become more serious before support is in place. At that point, the impact is greater for employees and adds challenges for the organization.
Coverage may be part of the benefit package, but the cost still keeps some employees from using it. When care is delayed or avoided, the strain eventually carries into the workplace. Rising premiums and higher out-of-pocket costs lead to increased claims for employers and erode the consistency of employee performance over time.
The link between affordability and performance is direct.
Employers cannot solve the issue alone, yet they do have viable tactics. Coverage designed to encourage preventive care, closer attention to member, vendor and provider incentives to drive the right behavior, and clearer information about how dollars are spent all create the needed discussion needed on cost management and benefit design. Yet even the best employer strategy may be limited by the larger system. Policy must adapt so that companies willing to invest in their people are not offset by rising costs they cannot control.
Moving forward will take action from both the business and the government. The measure of progress is not only in the price of premiums but in the health of the workforce and the stability of the organizations that employ them. Affordable coverage and access to care are not abstract ideals; they are essential for everyone. They represent the ground on which employers build a reliable workforce, and the system builds long-term sustainability.
About Justin Berry
As Conifer Health’s Vice President of Population Health, Justin Berry is responsible for PH teams including Clinical Delivery, Quality Management, Client Delivery, Data Operations, and Product Support and Training. He manages all client relationships, sets the direction for Conifer’s service offerings and works closely with all internal and external teams to ensure the highest quality outcomes and financial performance for Conifer’s Population Health clients.
About Mary Bacaj, Ph.D.
As President of Value-Based Care (VBC) for Conifer Health Solutions, Mary Bacaj is responsible for leading the company’s business unit that delivers population health management and financial risk management services to more than 250 organizations. Conifer VBC is uniquely positioned as a partner to employers and unions, risk-bearing healthcare providers and health plans.
Mary joined Conifer Health in 2014 as Vice President of Strategy to help the company identify and implement solutions that ensure individuals receive the right care at the right time, while healthcare providers are aligned to improve the health of the population. She is a recognized subject matter expert in pay-for-performance programs, hospital and physician alliances, and healthcare reform.Prior to joining Conifer Health, she was an Engagement Manager at McKinsey & Company, where she worked with senior executives at health systems and health technology companies on strategic challenges, such as population health management, hospital and physician mergers and acquisitions, and risk-based contracting.
