as originally seen in BenefitsPro on February 5, 2018
In today’s world, when access to medical coverage is on the political chopping block every week and there are many questions about what health insurance will look like in a few years (much less in the weeks to come), I believe the near-term trajectory of employer-sponsored medical insurance will be much less dramatic. Most employers will choose to “stay the course,” rather than tweak plan designs by moving deductibles and copays up or down. And forgoing the opportunity to make big changes will likely earn them some employee loyalty points – at least in the short term – given the uncertainty coming from Washington, D.C. on healthcare.
However, we will experience a shift in the HR world. Specifically, a broadening of how HR professionals see their roles in managing employee benefits as a whole – not only in the workplace, but also in an employee’s overall life. Why? Because employees are working longer hours than ever before, glued to their laptops at work, home, on the road, and in many cases, on vacation. This has led to an increase in mental “burn out,” pushing employees to switch jobs more frequently. That’s where non-traditional benefits can play a key role, and where I believe we’ll see the biggest change in our industry in the next few years.
In fact, large employers with a lot of resources at their disposal, such as Google and Facebook, have already lead the charge in this burgeoning area of employee benefits. New workplace enhancements, such as nap pods and free, chef-prepared meals may sound unusual to some, but have all made office life much more enjoyable. I expect smaller employers to take notice and grab on to these kinds of employee benefits.
Holistic Healthcare
Holistic medicinal services, such as acupuncture, cupping, chiropractic care and massage therapy will continue to grow in popularity as people search for new ways to stay healthy, fend off common ailments, ease stress and maintain youthfulness. In fact, according to Connecture’s 2017 healthcare consumer survey, certain generations – in particular Millennials and GenXers – are more open than ever to these kind of services as a means to staying healthy.
While much of this is outside the realm of what any practicing physician would prescribe (or carrier would cover), public acceptance of these types of wellness practices is steadily increasing. Particularly for self-funded employers that are turning to high deductible health plans, these non-traditional healthcare options can easily be included in their benefits programs so that payment of services go toward fulfilling deductibles and out-of-pocket maximums.
Dental
Dental is certainly more of a traditional ancillary product in our industry, but I think we’ll see some interesting and nuanced changes within this benefit option, too. Specifically, for companies with many client-facing employees (e.g., sales and account teams), appearance is increasingly important, and historically, dental plans cover almost nothing in terms of cosmetic procedures. However, it’s likely that Calendar Year Maximums will increase to an average of $2,000 (from the current $1,500) and Adult Orthodontia coverage will become more common, making it easier for employees to put forward their best foot (or tooth, in this case).
Technology
Who could have imagined 10 or 15 years ago that the average person would have access to a private driver at their door any hour of the day (thanks, Uber and Lyft!). Or, could get groceries delivered to their kitchen through a mobile app (thanks, InstaCart!). Technology has given the non-billionaires among us access to services that make almost anything more convenient and within arm’s reach. This trend will continue as more employers help cover the monthly costs for various health and wellness-focused apps, such as Aaptiva for personal training, Headspace for meditation and Dryv for delivery dry cleaning and laundry services, etc. I mean, who doesn’t like coming home to clean, folded laundry?
Family Policies
The competition for quality employees will only get steeper as jobs require more specialty skill sets. As a result, we will see more employers embracing policies that make balancing family and job easier for their staff. This will include adopting family leave policies that far exceed the federal mandates, implementing paid leave for new parents and even on-site day care options.
Student Load Payment Plans
There are currently 44 million Americans with student loan debt and student loan debt in the U.S. is more than $1.3 trillion. As employers continue to chase quality talent, we will also see that talent accrue advanced degrees and, therefore, more debt. Employers will continue (or begin) to offer student loan repayment options to employees to help ease the financial burden of higher education, thereby improving employee loyalty and the chances they will stay with the company year over year.
While the aforementioned forecasts are tactical, in the months ahead there will be a shift in HR mentality from a standard ‘check the box’ on employee initiatives and benefits, to a more strategic attempt to help employees achieve balance in their overall lives. Doing so will ensure that these employers will be viewed as forward-thinking companies among new applicants and current staff, and enabling them to better attract and retain the best and brightest for years to come.