The hidden cause of rising healthcare costs in the public sector

August 5, 2025

The hidden cause of rising healthcare costs in the public sector

A crisis of cost and access

Healthcare costs are surging — quickly. In 2026, organizations should brace for the biggest increase in healthcare spending in over a decade.¹ And musculoskeletal (MSK) conditions remain one of the top drivers. For public sector organizations, the cost burden is even greater.

While MSK issues affect all workforces, public sector health plans consistently spend more per employee than private sector counterparts—without better outcomes.² That’s because 89% of MSK spending goes toward reactive, high-cost care like imaging, injections, ER visits, and prescription medications, not physical therapy.³

The care members actually need — early access to PT — is often inaccessible. Less than 10% of people use PT in a given year.⁴ The rest face high out-of-pocket costs, long wait times, limited access in rural areas, or the inability to take time off work.

For public sector members, this leads to chronic pain, delays in care, and frustration — driving up overuse of surgery, opioids, and other costly interventions. It’s an unsustainable cycle that’s draining budgets and leaving workers in pain.


Real impact, proven savings

Across hundreds of public sector clients—including 20+ state plans and 150+ cities and counties—Hinge Health is changing how pain is treated. The results:

  • 73% average pain reduction with consistent use⁵

  • 42% fewer participants start opioids after joining⁶

  • 60% reduction in imaging within 3 months⁷

  • 73% fewer knee replacements⁸

  • $0 out-of-pocket costs for members

  • 2.4x ROI, validated by global actuarial firms⁹

Public sector leaders across the country are turning to Hinge Health to lower costs and improve well-being—and their members are responding. We consistently see high demand and strong enrollment across municipalities, state plans, and public universities. To explore how Hinge Health can make an impact for your members and organization, reach out today. 

Want to see how to get your members moving beyond pain?

  1. Employers anticipate 2026 to see biggest healthcare cost increase in over a decade https://www.hfma.org/fast-finance/employers-anticipate-2026-to-see-biggest-healthcare-cost-increase-in-over-a-decade/#:~:text=Employers%20anticipate%202026%20to%20see,in%20over%20a%20decade%20%7C%20HFMA
  2. Why are employer-sponsored health insurance premiums higher in the public sector than in the private sector? https://www.bls.gov/opub/mlr/2018/article/employer-sponsored-health-insurance-premiums.htm
  3. Digital musculoskeletal impact on medical claims: 136 employer study
  4. National Institutes of Health. Eunice Kennedy Shriver National Institute of Child Health and Human Development. Pelvic Floor Disorders (PFDs)
  5. Wang G et al. (2022) Clinical outcomes one year after a digital musculoskeletal (MSK) program: an observational, longitudinal study with nonparticipant comparison group. BMC.
  6. Wang et al. (2023). J of Pain Research. “Opioid initiation one year after a digital musculoskeletal (MSK) program: an observational, longitudinal study with comparison group.”
  7. Lu, L., Yadav, S., Wang, G., Bailey, J. (2024) “Digitally delivered conservative musculoskeletal care associated with fewer imaging visits for back pain.”
  8. Lu, L., et al. (2023). Digital musculoskeletal program is associated with decreased joint replacement rates. The American Journal of Managed Care, 30(4), e103-e108.
  9. 136 Employer Medical Claims ROI Study validated by Milliman, 2022.