The cost of employee healthcare continues to rise and employers are looking for ways to keep their costs in check without burdening employees. HIPAA compliant emails allow healthcare organizations to promote cost-saving programs without compromising protected health information (PHI).
Healthcare costs continue to increase
Healthcare costs will rise 7.7% in 2025, according to the WTW's 2024 Best Practices in Healthcare Survey.
In addition, an Aon report from August said the average cost of employer-sponsored healthcare coverage in the U.S. is expected to increase by 9% next year, topping $16,000 per employee in 2025.
To offset these costs, 21% of responding employers were "planning or considering promoting drug discount cards or direct-to-consumer prescription delivery to lower out-of-pocket costs in the next two years."
These changes are part of a broader effort to make healthcare more affordable to employees while avoiding traditional cost-shifting strategies like premium contribution increases. Innovative approaches like these will reduce out-of-pocket costs and make healthcare more accessible.
More specifically, “Employers report the greatest opportunities for artificial intelligence in supporting health and benefits are navigation solutions (64%) and communication (58%).”
However, these communication solutions also have new challenges in safeguarding protected health information (PHI).
For example, if an employer offers prescription drug discount cards through email, any communications about specific drugs an employee might be eligible for or information regarding their healthcare plan would fall under PHI.
Therefore, when employers notify employees of these new options via email, for instance, they must comply with the Health Insurance Portability and Accountability Act (HIPAA).
Read also: Should employee assistance programs (EAPs) be HIPAA compliant?
HIPAA and email communication
Any employer discussing prescription drug programs via email must use a HIPAA compliant platform, like Paubox. These platforms encrypt identifiable employee information, including healthcare benefits, prescription discounts, or direct-to-consumer options. It also allows employers to securely email internal department publishing notices or third-party service providers assisting with dispensing prescriptions.
Furthermore, HIPAA compliant emails are a cost-effective solution that addresses employers’ need to “continue to explore new technology-enabled solutions for managing costs.”
Proactive cost management strategies
"To navigate the current healthcare environment, companies need to proactively address cost challenges and implement effective risk management strategies," explains Courtney Stubblefield, managing director of health and benefits, at WTW. "By doing so, they can mitigate financial risks, support the wellbeing of their workforce, and achieve long-term sustainability."
HIPAA compliant emails directly reduce the risk of costly data breaches and potential legal ramifications for healthcare organizations. Additionally, HIPAA compliant communication improves trust, ultimately improving the organization's reputation.
Go deeper: Why HIPAA compliance pays off
FAQs
Who does HIPAA apply to?
HIPAA applies to healthcare providers, health plans, and healthcare clearinghouses, as well as their business associates who handle protected health information (PHI).
What constitutes PHI in emails?
PHI in emails can include any health-related information that identifies an individual, such as medical history, treatment information, or insurance details.
What rights do individuals have under HIPAA?
Individuals have the right to access, request corrections, and obtain a copy of their health information.
