UBCNews - Business - Why Employers Are Ditching Pricey Insurance For Telehealth Benefits

Episode Date: December 5, 2025

OK, let's jump right in with something that's hitting a lot of business owners hard right now. Health insurance premiums are climbing at a pace we haven't seen in decades. In 2024, the average family premium hit twenty-five thousand, five hundred seventy-two dollars. By 2025, that jumped about six percent to nearly twenty-seven thousand. That's way faster than wage growth or inflation. What's driving employers to finally say enough is enough? TelehealthWatch City: Miami Address: 8345 Northwest 66th Street Website: http://telehealthwatch.com

Okay, let's jump right in with something that's hitting a lot of business owners hard right now. Health insurance premiums are climbing at a pace we haven't seen in decades. In 2024, the average family premium hit $25,572. By 2025, that jumped about 6% to nearly 27,000. That's way faster than wage growth or inflation. What's driving employers to finally say enough is enough? Right, and it's not just premiums. Deductibles have been climbing steadily

with the average single coverage deductible at $1787 in 2024. Worker contributions for family coverage are now over $6,800 annually. Employers are feeling squeezed from every angle. And here's the thing. When health care costs are eating up more of everyone's budget, businesses have to find alternatives.

That's where telehealth is really stepping in as a cost-effective solution. Mm-hmm. That makes sense. So telehealth isn't just a pandemic trend anymore. It's becoming a permanent fixture? Exactly. Telehealth reliance and mental health claims

related to telehealth have increased significantly, with mental health representing a major portion of virtual care visits. A substantial majority of hospitals now offer or plan to offer telehealth services. Compared to just a few years ago, we're seeing a significant increase in hospitals delivering a larger share of their care virtually. That's a massive shift. So for small business owners listening, what are the real benefits here? How does telehealth actually save money and improve things for employees? Well, there are three big wins. First, reduced costs. Virtual visits typically cost between $40 and $50,

while in-person visits can run around $176. Second, improved employee satisfaction because people can consult doctors from home, avoiding long waits and exposure to illnesses, and third, increase productivity. Employees can address non-emergency medical concerns remotely, which means fewer missed work days and less absenteeism. Ah, gotcha. What about accessibility? I'm thinking about employees in rural areas or folks who just can't get to a specialist easily. That's huge. Telehealth eliminates geographical barriers entirely. Patients in rural areas can access specialized care they'd never get otherwise. You're not limited to whoever's in your zip code anymore.

Plus, for mental health specifically, the privacy features of telehealth remove common barriers to care. People are more willing to seek counseling and therapy when they can do it discreetly from home. I actually had a colleague who avoided therapy for years because she didn't want to be seen walking into a psychiatrist's office in her small town. Once virtual sessions became available, she finally got the help she needed. Wow, that's powerful. You mentioned mental health, and I know that's becoming a real pressure point for employers. Can you talk about that gap? Absolutely.

In 2024, 23.4% of U.S. adults, that's over 60 million people experienced mental illness. A significant percentage report difficulty accessing care because of provider shortages. And it's going to get worse. Federal funding cuts of $1.1 billion to SAMHSA in 2026, along with other CDC cuts, are expected to strain behavioral health services even further. Telehealth provides a way to bridge that gap by giving people discrete and accessible counseling without the need for in-person visits. Right, so accessibility becomes this critical piece.

That point about accessibility really sets up our next question. How do you actually choose a good provider? But first, a quick word from our sponsor. Finding the right telehealth solution for your business doesn't have to be overwhelming. Telehealth Watch helps employers and individuals compare affordable telehealth plans, find mental health support options, and discover prescription savings. Our platform gives you clear, reliable information to help you make confident decisions about telehealth coverage and extra health care perks. Whether you're a small business owner looking to control costs,

or an HR manager seeking better benefits, we're here to guide you. Learn more at telehealthwatch.com. Picking up on that accessibility question, what should business owners be looking for to ensure full coverage and quality care? Great question. You want to look at a few key things.

First, what services are covered? Does the plan include mental health, prescription access, in specialist consultations? Second, check provider availability. Can employees access care 24-7 or are there limited hours? Third, look at the technology platform itself. Is it user-friendly?

And fourth, understand the cost structure. Are there co-pays or is it a flat monthly fee? Mm-hmm. All very important. You want to make sure the providers are board certified and that there's continuity of care. Can employees see the same provider for follow-ups? That consistency improves outcomes. Also, look for platforms that integrate with existing health records.

Telehealth should improve clinical workflows and boost overall efficiency, not create more administrative headaches. So let's talk about employee retention, because this isn't only focused on cutting costs, right? There's a talent piece here, too. Oh, absolutely. A significant percentage of employees say they'd stay in a role if benefits were better matched to their personal needs. When you offer telehealth, you're demonstrating a real commitment to, to employee well-being. In a competitive job market, that makes you a more attractive employer. Plus, telehealth helps with burnout.

Healthcare workers, for example, can work from home, avoiding chaotic environments and time-consuming commutes. Have you ever wondered how much time and money your team is actually losing to health care access issues? Like the hidden costs of absenteeism? That's the thing most employers don't calculate. Telehealth saves employees time, no travel, no waiting room. that translates directly to reduced absenteeism and better productivity.

And when people can get early intervention for health issues, you're preventing bigger, costlier problems down the road. In other words, catching issues early means you're stopping small problems before they become expensive emergencies. Practices using telehealth services often have lower operating costs overall and see better patient outcomes. So to everyone listening who's wrestling with rising premiums and trying to keep good talent.

What's the bottom line here? The era of stable, employer-funded traditional insurance is shifting. Health insurance premiums are rising faster than wages, and employers are turning to cost-sharing strategies and alternatives like telehealth. Small businesses especially can benefit from reduced costs, greater employee satisfaction, and improved productivity. Telehealth is becoming a standard benefit.

A high percentage of major employers now provide telemedicineering coverage. If you're not considering this option, you're going to fall behind. And let's be honest, nobody wants to be the company still offering VHS benefits in a streaming world, right? Yeah, that's one way to put it. And this isn't replacing traditional insurance entirely, but complementing it, right? Exactly. Telehealth can reduce emergency room visits, improve access to mental health care, and provide flexibility that employees really value. The key is finding a plan that fits your workforce's specific needs, whether that's mental health support, chronic condition management, or just convenient access to primary care. The employers that innovate with flexible, personalized benefits will gain a competitive edge.

Well, this has been eye-opening. I think we've given small business owners and HR managers a lot to think about as they work through these health care challenges. Thanks for breaking it all down. My pleasure. It's a complex situation, but there are real solutions out there if you know where to look.