Out-of-Pocket Costs Are Crippling Employees—Global Concierge Services Can Bring Procedure Costs Down by 50% and Copays to Zero

Rising healthcare costs are often accepted as an inevitable burden, quietly passed down to employees over time. These costs aren’t just financial—they’re emotional and organizational, impacting well-being, productivity, and retention.  

But what if there was a way to break free from this cycle? Global Centers of Excellence (COEs) offer a proven solution to meaningfully reduce costs while improving care quality.

Here, we explore the toll rising healthcare costs can have on employees, how these financial burdens affect business productivity and retention, and reveal why Global Concierge Health Services are the right solution to this spiraling problem.

The Impact of High Healthcare Costs on Employees

Most employees have little to spend on essential medical care 

The high cost of healthcare can have a devastating impact on employees. Many workers are struggling to keep up with the rising cost of premiums, deductibles, and out-of-pocket expenses. This perfect storm of circumstances often leads to financial hardship, stress, and anxiety.

In the US, for example, most adults have less than $10k in life savings¹. With premiums, copays, and deductibles continuing to rise year over year, planned care can be unaffordable. According to the Kaiser Family Foundation (KFF), nearly 50% of Americans find it challenging to afford medical care. In fact, half of them wouldn’t be able to cover an unexpected $500 medical bill in full, and one in five have delayed seeking care due to costs².

Despite the growing focus on healthcare benefits, the reality is that most employees simply can’t afford the rising costs. With deductibles often exceeding $5,000 and limited savings, even routine medical expenses become a financial burden. Nearly half of employees report difficulty affording care, and many delay or skip necessary treatments altogether.

Medical debt is pervasive

Roughly 40% of people surveyed by KFF have medical debt, with half of them having exhausted their savings to pay for medical bills. Sadly, those in the poorest health are the most affected, as medical debt is more prevalent among patients with serious health issues or disabilities.

But it’s not only people surveyed who are carrying the burden. Medical debt has become so widespread in the U.S. that it’s been removed in part from the ratings³ of major credit reporting agencies. This alarming trend underscores the need for systemic changes so less people are carrying the financial strain of medical debt.

Employees are shouldering the weight of healthcare costs

In response to rising healthcare costs, many global employers feel they have little choice but to pass on these costs to employees through higher cost sharing, network access reduction, and fewer covered services⁴. At the same time, employees have increasingly been squeezed by providers requiring copayments be made in advance of treatment⁵. 

Cost shifting has worsened employee mental health

High out-of-pocket expenses have led to increased employee stress and burnout⁶, even as companies prioritize employee well-being and mental health. Increased cost-shifting also results in delayed diagnosis and treatment,² causing not only employee suffering but higher downstream health costs for the businesses that employ them.

On the Healthcare Affordability Index, “cost insecure” refers to individuals who experience significant anxiety about their ability to afford healthcare costs in the near future. “Cost desperate” describes those who are currently unable to afford necessary medical care, leading to severe financial and health consequences. Ultimately, an overwhelming majority of Americans are concerned in some capacity about their ability to pay for medical care.

Employee cost concerns are not just an American issue

Medical care costs can be challenging for employees outside of the U.S. due to the increasing use of private hospitals with much higher out-of-pocket expenses. These private facilities are often used to avoid the lengthy delays associated with public health systems,  which can take months to years for procedures like orthopedic and bariatric surgeries.

For example, the NHS reports that it can take up to 18 months to schedule a surgery in the UK. Similarly, some provinces in Canada regularly experience delays as 72% of procedures weren’t done in a timely manner in Prince Edward Island, and 64% were not completed on time in Saskatchewan. While surprising to many, medical bankruptcy is one of the most common causes of financial hardship for Canadians despite the presence of a national healthcare system since private care is often required⁷.

Rising Healthcare Costs Worsen Business Productivity and Retention

Employees experiencing financial stress will not be as productive

Financial stress leads to mental and emotional exhaustion and is a leading cause of burnout⁶. It’s also a common cause of both missed and delayed care, which leads to worsening health and reduced physical functionality. As COVID-19 demonstrated, delayed care for certain conditions like cardiovascular disease and cancer can be life-threatening and result in elevated downstream medical expenses.

Moreover, financial stress not only affects a person’s physical and mental health but their productivity and job performance. Chronic stress and burnout can lead to increased absenteeism, lower engagement, and higher turnover rates, all of which are costly for employers. Additionally, the pressure to manage rising healthcare costs often forces employees to make difficult choices between seeking necessary medical care and fulfilling other financial obligations, perpetuating a cycle of poor health and economic instability.

Elevated health costs increase employee churn

Employees experiencing financial stress from medical causes also have higher dissatisfaction with their medical benefits and are more likely to seek alternative employment. When limited health benefits are present, employees are more likely to seek other jobs with more generous benefits. Conversely, employees are more likely to remain in jobs they perceive provide generous health benefits⁸.

Employers who proactively address concerns by offering comprehensive health benefits foster loyalty and create a more motivated and productive work environment. By investing in their employees' well-being, companies can reduce turnover rates, enhance job satisfaction, and ultimately boost their overall organizational performance.

Global Concierge Health Services are a Powerful Tool to Combat Cost Concerns

Procedures at Global COEs cost significantly less

Many global COEs can price procedures at less than 50% of the cost of high-income countries like the U.S. and can produce health outcomes that greatly exceed global benchmarks. For example, a knee replacement at a World Class Health global COE can be priced at just $12,500. This also includes the cost of pre-operative testing and seven days of post-procedure recovery with daily physiotherapy and nursing visits. Compare this to the average U.S. inpatient knee replacement cost of $34,919.

These significant cost savings extend across a range of medical procedures, including orthopedic surgeries, bariatric treatments, cardiac interventions, cancer care, gastrointestinal procedures, fertility treatments, and others. See representative World Class Health procedure pricing in the table below.

Healthcare quality at global COEs can also be exceptional

Healthcare isn’t typically viewed through the lens of a global marketplace that could provide expedited access to extremely high-quality care. This is despite the existence of numerous global COEs around the world. For instance, over 200 of the Newsweek Top 250 hospitals are located outside the U.S., in regions including Latin America, Europe, the Middle East, and Asia. Additionally, Joint Commission International has accredited approximately 1,000 global hospitals using the same strict accreditation standards as those in the U.S. While the care in the U.S. can be outstanding, top-tier medical services are available across the globe.‍

Patients Will Engage a Global COE network with lower costs and higher quality 

Employees are attracted to the financial benefits of a global COE network. When asked what the primary advantage of a global COE program would be, respondents from a recent YouGov survey noted the $0 out of pocket costs as the most important or second most important in almost 60 percent of responses. Interestingly, cost reduction was a major perceived benefit of the program even among the subset of survey respondents making more than $150,000 a year, suggesting that cost savings are an important target for innovation across a broad spectrum of employees, not just those with lower income levels.

The Time is Now to Extend Provider Networks to Include Global COEs

As is well known, health care costs continue to rise, with average rates of increase exceeding 10% in many parts of the world. In addition to making businesses less financially secure, these trends directly harm employees and result in both reduced productivity and churn. 

There has been no better time for global employers to embrace the cost savings and quality improvement opportunities offered by global COEs. As with any new category, there will be skeptics. However, the potential to significantly enhance employees’ lives and business performance is undeniable. In the not-so-distant future, you’ll almost certainly look back and wonder, “Why didn’t we think of this sooner?”