Elevance Health announced on April 30 that its affiliated health plans are offering new approaches to help small businesses control and predict healthcare costs. The company said these efforts are in response to a reported 26% increase in healthcare expenses for small businesses and their employees over the past five years.
The issue is important because small businesses often lack the resources of larger companies when managing rising healthcare expenses. Elevance Health’s solutions include Balanced Funding and Multiple Employer Welfare Arrangements (MEWAs), which aim to make healthcare more accessible and affordable for employers and workers.
“Small businesses are navigating significant cost pressures, and healthcare is often one of their largest expenses,” said Morgan Kendrick, EVP and President, Commercial & Specialty Business, Elevance Health. “Our Balanced Funding and MEWA solutions are designed to give employers greater cost stability, shared risk protection, and tools that support preventive care. When costs are more predictable and employees stay healthier, businesses are better positioned to grow and compete.”
Balanced Funding offers fixed monthly payments with protections against financial risk. Employers may receive money back if employee health costs fall below expectations. This model helps avoid some fees tied to traditional insurance plans while providing access to detailed reporting on hospital or prescription drug spending. It also encourages early care by supporting preventive services.
MEWAs allow small employers to join together for better rates by pooling their employees into a larger group. For example, the Kentucky Chamber partnership has seen participation from 4,200 employers statewide with an estimated $400 million saved since it began five years ago. In Ohio, a similar program has generated about $1.3 billion in employer savings over ten years.
Digital tools such as the Sydney Health app further support cost reduction by helping employees compare care options quickly; users have saved an estimated 1.5 million hours through easier navigation of services.
According to the official website, Elevance Health promotes equity and inclusion within its operations as well as community efforts; it is recognized as a leading employer for veterans; reaches millions through its network of affiliated health plans; focuses on enhancing well-being by addressing physical, behavioral, and social factors while simplifying healthcare; provides comprehensive health services aimed at fostering innovation; and operates in the health sector as a major player.
Tony Emberton, Financial Administrator of Potter Children’s Home in Kentucky’s MEWA Board of Trustees said: “The ChamberAdvantage program has been transformational for organizations like ours… Lowering healthcare costs and having more stability is invaluable —and it’s exactly what employers need to keep serving their communities.”
Looking ahead, Elevance Health says these funding models combined with digital access can provide long-term consistency in employer-sponsored benefits.
