Preventive care has long been one of the most effective tools for improving health outcomes and managing healthcare costs. Yet new research suggests that fewer employees are taking advantage of routine screenings, annual physicals, and other preventive services. For employers, unions and fund administrators, this trend raises important questions about the future of workforce health, benefits utilization and healthcare spending.
A recent Employee Benefit News article, “Preventive Care Is Collapsing, and Employers May Soon Pay the Price,” highlights findings from HealthJoy’s fourth annual Member Health Goals Report and the potential consequences of declining preventive care utilization.
A Troubling Trend with Long-Term Implications
According to the report, only 17% of employees plan to get an annual physical this year, representing a 45% decline from 2024. The study also found growing rates of chronic conditions and mental health concerns among employees, with approximately 60% of respondents reporting that they are managing at least one chronic condition.
While skipping an annual checkup may seem insignificant, the long-term impact can be substantial. Preventive care often helps identify conditions such as cancer, hypertension, diabetes and heart disease in their earlier stages, when treatment is typically more effective and less costly. Delayed diagnoses can result in more serious health complications, higher medical expenses and greater financial strain for both employees and employer-sponsored benefit plans.
As the article notes, early-stage cancer treatment can cost significantly less than treatment following a late-stage diagnosis. Similar patterns exist across many chronic conditions, where proactive management can help prevent costly complications and improve quality of life.
Why Employees Are Delaying Care
The decline in preventive care is driven by a combination of factors. Healthcare provider shortages, scheduling challenges, concerns about unexpected costs and lack of engagement with available benefits are all contributing to lower utilization rates.
The article also points to the growing connection between physical and mental health. Individuals managing chronic pain or long-term health conditions often face mental health challenges as well, creating a cycle that can further complicate care and increase healthcare costs.
For employers, unions and fund administrators, encouraging preventive care participation is becoming an increasingly important strategy for supporting healthier populations and managing long-term healthcare costs.
The Role of Supplemental Protection
Even with access to preventive care, unexpected illnesses and injuries can create significant financial stress for employees and their families. That is why many employers, unions and fund administrators are expanding their benefits strategies with supplemental coverage options designed to provide additional financial protection when life takes an unexpected turn.
Amalgamated Life Insurance Company offers Accident Insurance and Critical Illness Insurance that can help employees better manage the financial impact of covered injuries and serious health conditions. These products are designed to complement traditional medical coverage by providing benefits that can help address out-of-pocket expenses and other costs that often accompany a medical event.
As healthcare costs continue to rise, supplemental benefits can play an important role in supporting both financial wellness and overall workforce resilience.
Preparing for the Future
The decline in preventive care serves as a reminder that employee health, engagement and financial security are deeply interconnected. Organizations that take a proactive approach to benefits education, preventive care awareness and supplemental protection may be better positioned to support their populations while managing future healthcare costs.
At Amalgamated Life, our commitment to serving working people is rooted in a proud union heritage that continues to guide our approach today. Backed by an “A” (Excellent) financial strength rating from AM Best Company, since 1975, we remain focused on delivering reliable solutions that help protect employees and their families.
To learn more about Amalgamated Life’s Accident and Critical Illness Insurance solutions and how they can support the goals of employers, unions and fund administrators, contact an Amalgamated Life sales representative today.