While Generation Z and millennial workers still account for fewer claims than their baby boomer counterparts, claims in these populations are rising fast, according to a new report.
UnitedHealthcare and the Health Action Council (HAC) earlier this month released their annual white paper digging into key trends impacting the employer market and found that the number of claims for lower-aged workers are increasing more quickly than they did for baby boomers.
Between 2023 and 2025, the year-over-year growth rate in claims was nearly double that of baby boomers. The study also found that younger individuals were developing conditions like diabetes or obesity earlier in life and were less likely to be engaged with a primary care provider (PCP), instead frequenting the emergency room.
All of these factors can drive up medical costs for employers in the long term, according to the report.
“A big differentiator in those younger folks is they access the system very differently,” said Craig Kurtzweil, chief data and analytics officer at UnitedHealthcare, in an interview with Fierce Healthcare.
For employers or plan sponsors that identify this trend, the challenge is how to best engage this population around their health. One approach, Kurtzweil said, is to try and incentivize them to develop a primary care relationship through education and communication programs that make clear the value of a PCP.
Or, plan sponsors can consider alternative options like on-site clinics or virtual care that can connect people to the healthcare system without necessarily leaning on primary care, he said.
Patty Starr, president and CEO of the HAC, told Fierce that another approach, if it makes sense for that employer’s workforce, may be to engage with local, high-performing providers to build relationships that may be beneficial.
She said it’s also key to ensure that the importance of engaging with and managing your health is a message beyond the annual benefits enrollment window.
“That doesn’t just happen during open enrollment,” Starr said. “It has to happen throughout the year, has to be a consistent message and part of the culture.”
The study further underscores the value of primary care by finding that people who see their PCP regularly have 27% fewer claims for major health events, and they’re less likely to visit the emergency department or be admitted to the hospital.
In addition, for patients with chronic needs like diabetes or high blood pressure, keeping up with primary care visits can reduce significant healthcare costs by 20%, according to the study.
Kurtzweil said younger workers are not accustomed to shopping in the way healthcare demands, as they’re used to everything they want or need being available in the palms of their hands. Virtual care can offer a critical on-ramp to primary care relationships for those who would benefit most, he said.
“But it has to be more than just answering cough and cold questions,” Kurtzweil said. “These are folks that are now developing diabetes and hypertension and conditions like that, so you have to be able to manage chronic disease.”
Younger men are the most likely to skip preventive care, according to the study, which is driving earlier onset of diabetes and other chronic conditions. Men with these conditions are seven times more likely to experience a stroke, heart attack or major health event, which can sharply escalate health costs and claims.
Starr said the data suggest men are not seeking on care on the same level as women until they reach their 60s.
“If we’re going to reduce some of the burden on that population, we have to get to them before the age of 40,” Kurtzweil said.