Accolade (ACCD) Stephens 26th Annual Investment Conference | NASH2024 summary

Market and regulatory environment

• No anticipated regulatory changes expected to impact the business, but increased competition among carriers could create more complexity and opportunity for employer clients.

• Any healthcare system changes tend to increase the value of navigation and advocacy services.

• Employers may face more options and complexity if carrier competition increases, enhancing the need for support services.

Inflation and employer priorities

• Health care costs and insurance premiums are forecasted to rise 8%-10% for a third or fourth consecutive year.

• CFOs are challenged by rising costs without added benefits, increasing interest in advocacy solutions that guarantee ROI.

• HR teams focus on employee experience, while finance teams scrutinize additional spending.

Competitive landscape and market adoption

• Most market opportunities remain with employers not using navigation or advocacy solutions, rather than competitive takeaways.

• Market acceptance of advocacy navigation is growing, with large consultants increasingly recommending these solutions.

• Full-service advocacy solutions are still early in adoption, with less than 1,000 customers among leading providers.

• CFOs recognize broader economic value from improved employee health experiences, including productivity and retention.