Big data — the use of large, complex data sets to identify trends and associations — is nothing new for benefit managers at large companies. For years, employers have looked to data warehouses to help them wrangle different sources of data to understand and assess their employee health benefits programs. Given that healthcare is a large part of the budget for American businesses, embracing big data is more important than ever.
This is especially true in a tight labor market. In June, the national unemployment rate stood at 3.7%, low by historical standards. Most employers can no longer control spending by shifting healthcare costs to employees through higher premiums, deductibles, and copays. Instead, they need to explore innovative purchasing strategies, such as benefit designs encouraging the use of accountable care organizations or narrow networks and direct contracts with healthcare providers.
