Skip to main content

Benefits Breakdown Newsletter – December 2022

Trendiest benefits for 2023

Employers should consider offering their employees more than just a healthcare plan for 2023. Employers can offer holistic benefits, resources and perks to meet evolving worker needs shaped by the lingering effects of the COVID-19 pandemic, a tight labor market and rising inflation.

Employers are offering the following popular benefits:

  • Hospital indemnity insurance — Healthcare affordability is top of mind for employers and employees alike. Hospital indemnity insurance can provide value to employees without raising an employer’s costs, making it a powerful tool for attracting and retaining top workers.
  • Health savings account contribution — Many employees are feeling financially strained due to record-high inflation. Financial wellness benefits, such as health savings account contributions, can ease employees’ financial stress and make an organization more attractive to today’s workers.
  • Family-friendly benefits — Many employers offer parental leave, adoption and surrogacy benefits, which support the unique and complex ways individuals and couples build their families.
  • Healthcare full premium coverage — This type of benefit helps employees with rising healthcare costs and is common in many small organizations.

Organizations can start optimizing benefits packages by evaluating employee preferences and thinking about ways to improve offerings or tailor them for their workforce. To ensure offerings and investments will resonate with employees, organizations should consider surveying them first. It's important to keep a pulse on employees and see what they find most valuable and necessary for their overall well-being.

Medical trend can help shape benefits strategies

“Medical trend” is the projected percentage increase in the cost to treat patients from one year to the next, assuming benefits remain the same. Insurance companies use these projections to calculate health plan premiums for the upcoming year.

The leading cause for a medical trend increase is rising prices at points of care. Other factors impacting medical trend include healthcare utilization, the impact of fixed deductibles and copays, healthcare cost shifts from uninsured individuals to insurance companies, government-mandated benefits, technological advancements, high-cost medical treatments and prescription drugs.

As healthcare costs outpace their wages, coverage is becoming less affordable for many workers in the United States. Understanding medical trend can help employers better design benefits plans that meet the needs of their organization and employees.

Increased medical trend often equates to higher medical costs for employers. As a result, many employers are searching for cost-effective solutions to manage growing healthcare costs and keep benefits affordable for employees. These solutions may include directing employees to cost-effective care, improving employee health literacy, incorporating healthcare technology and adjusting plan design. Savvy employers can use their understanding of medical trend to monitor healthcare costs and implement strategies to ensure their benefits plans are sustainable and beneficial to employees.

The information in this newsletter is intended for informational use only and should not be construed as professional advice. © 2022 Zywave, Inc. All rights reserved.


Popular posts from this blog

COVID-19: Retirement and Benefit Plan Resources

As the COVID-19 crisis continues to unfold, we are closely monitoring news and updates from top sources. We’ll be updating this section as new developments unfold. Here are several key articles and links to help plan sponsors and administrators navigate the COVID-19 impact to retirement and benefit plans: Retirement Plans 4 Key CARES Act Provisions for Retirement Plan Sponsors Markets React to Coronavirus   Important Considerations for Retirement Plan Sponsors during the Coronavirus Pandemic In Fed We Trust Participant Education Services: Timely Help from a Safe Distance CRDs 100% Taxable for New York State and Local Income Tax Purposes in 2020 IRS Permits Remote Notarization of Participant Elections   Employee Benefits CARES Act Expands Health Coverage Rules Understanding the Historic $2 Trillion Stimulus Package Employee Compensation and Benefits During Closures and Furloughs DOL Clarifies Exemptions to Coronavirus Paid Leave Laws Small Business Exemption to
Read more

SECURE 2.0 Discussion Series: Session One

SECURE 2.0 provisions: What we know and what’s still up in the air The SECURE 2.0 Act, signed into law in late December 2022, has factored heavily in retirement industry discourse since the final legislation was published. As with any legislation of this depth and breadth, there’s a lot to digest and the industry takes time to adjust. Our team of experienced advisors recently met to discuss some of the more nuanced provisions of the legislation, such as changes to Roth contributions, and what they could mean for plan sponsors. Panel participants included the following HBS team members: Noah Buck, Christina Bauer-Dobias, Sean Bayne, Vincent Bocchinfuso and Kathleen Coonan. Highlights of our panel’s conversation below should serve to help guide plan sponsor thinking. On Roth employer contributions NB – In addition to deferring pre-tax or Roth, plan sponsors can now allow employer contributions to be classified as Roth, is that right? VB – Correct. This is immediately available to plan s
Read more

SECURE 2.0 Discussion Series: Session Two

The retirement industry has been buzzing since the SECURE 2.0 Act was signed into law last December. This new, comprehensive legislation has sparked a lot of discussion. As with any major reform, it will take time for the industry to fully adapt and understand all its implications. Following our April 11 webinar on the first three months of the industry’s response, our team reconvened to discuss some of what we have heard from our client and vendor partners and to respond to some of the great questions we heard from attendees. Panel participants included the following HBS team members: Noah Buck, Christina Bauer-Dobias, Sean Bayne, Vincent Bocchinfuso and Kathleen Coonan. The Discussion SB – Throughout the webinar, I wanted to stress two things: 1) confusion about where to start and what is expected from plan sponsors is normal; and 2) even more than three months in, this is a developing situation and people should expect changes as time goes on. With those in mind, engagement through
Read more