A new approach to employer healthcare: cutting costs without cutting corners

As employers across the United States grapple with surging healthcare costs, one factor looms especially large: rising deductibles. High-deductible health plans (HDHPs) – once a fringe approach to lowering monthly premiums – now dominate many benefits offerings. While these plans can reduce employers’ premium costs in the short term, they also shift more out-of-pocket expenses onto workers. This shift has sparked increased frustration, delays in care and growing scrutiny across the market.

 

The employer benefits paradox: more spending, less value

 

Over the past five years the average annual deductible for single coverage in HDHPs has surged by 15 per cent, from $2,271 in 2018 to $2,611 in 2023, representing a 52 per cent increase over the past decade. Many US workers facing higher deductibles delay or forego medical treatment. In fact, a recent study in Health Affairs Scholar revealed that moving to an HDHP can reduce outpatient utilization by as much as 10 per cent in the first year. Meanwhile, 40 per cent of employees on these plans delay and forego care.

 

Those who do seek care often deplete savings, take on credit card debt or even turn to crowdfunding to pay bills – leading to record-high dissatisfaction. According to the latest Gallup poll, only 28 per cent of Americans rate US healthcare coverage as “excellent” or “good”, and cost consistently ranks as the most urgent health problem facing the country

 

For businesses striving to contain expenses, swapping lower premiums for higher deductibles can be immediate relief, but there is no evidence that it bends the cost curve over the long term. Instead, employees are not getting care, going into debt and distrusting the benefits. The investment meant to retain talent and increase productivity does not deliver the intended value and leaves employees feeling anything but insured. This has paved the way for new entrants looking to deliver more affordable, accessible and innovative insurance options in a sector that hasn’t undergone material transformation for decades.

 

The path forward: a deductible-free alternative

 

Amid growing calls for change, Curative, an employer-based health insurance provider, offers a simplified model: zero copays and zero deductibles for in-network care. These plans are competitively priced but aim to deliver long-term savings by removing the obstacles that too often discourage preventive and proactive care.

 

“Financial barriers often stand between people and the care they need,” says Fred Turner, CEO and co-founder of Curative. “By removing deductibles and copays, we make it possible for individuals to seek care earlier and more often, ultimately preventing costly complications.”

 

Currently partnering with employers headquartered in Texas, Florida and Georgia – and soon to expand – Curative offers a national provider network that covers members wherever they live or travel within the United States.

 

The baseline visit: elevating engagement

 

A key differentiator in this model is the baseline visit, required annually within the first 120 days of coverage to maintain access to zero copays and deductibles. Unlike standard health assessments, the visit includes two parts: 

• In-depth time with a clinician who understands the plan to guide you on a health path
• An onboarding either through an appointment or through an online guided experience to better understand the plan and get connected to the resources

 

Curative reports that over 90 per cent of new members complete the baseline visit, an achievement that has contributed to a 75+ net promoter score (NPS) – a notably high satisfaction rating in the health insurance sector.

 

Healthier employees, healthier bottom line

 

When individuals put off healthcare due to high deductibles, preventable health issues escalate into chronic, costlier conditions. By breaking down financial barriers, Curative gives employees the green light to manage chronic conditions, address mental health concerns and pursue preventive checkups without fear of hefty bills.

 

Over time, this approach aims to reduce catastrophic claims and unexpected medical expenses – ultimately offsetting premiums with healthier outcomes. And it is increasingly relevant as companies look for benefits that go beyond simply shifting costs to truly supporting a stable, productive workforce.

 

In a marketplace where traditional models haven’t always served employers or employees well, innovations such as Curative are increasingly catching the eye of organisations seeking to balance affordability, access and satisfaction.

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For more information, visit curative.com