It's natural to want to defer any major decisions or changes until next year, but this would mean a lost opportunity to new tax savings options for plan participants and lower costs for employers at a critical time.
Speculation around the benefits cost impact of COVID-19 continues. Some are expecting a double-digit increase in health care costs, while others, a decrease (based on expected delayed services with shelter-in-place restrictions). There's unprecedented unpredictability of what's to come – just as routine yearly benefits reviews would typically be taking place for 2021.
The most common reaction is for employers and brokers to take a "wait and see" mentality. But this overlooks the reality of the underlying situation – health care is evolving, permanently. Benefits offerings must keep up to better accommodate employees and further reduce employer health care costs. The one-solution-fits-all approach is over and done with.
Don't delay your benefits review
To call the situation around us a distraction would be downplaying the intensity of COVID-19. If you haven't had a virtual meeting interrupted by a partner, child, or pet, you are in the minority. Also, it's not just you; internet connections around the country are degraded. So, trying to conduct business, as usual, is not only hard but nearly impossible.
Yet, these are the circumstances that we all now operate within. It's natural to want to defer any major decisions or changes that need to happen until next year's open enrollment, such as moving to a consumer-driven health olan (CDHP). However, this would mean a lost opportunity to new tax savings options for plan participants and lower costs for employers at a critical time. The market has been moving toward CDHPs for years, and two-thirds of employers offered one in 2018. CDHP plan adoption is projected to accelerate even further as the industry continues to reel in response to COVID-19.
Virtualize and personalize your benefits approach
We are living in a virtual world. Meetings, calls, and benefits education are all being done remotely. The same problem we are all facing helps shape the solution. You often hear providers say they can deliver a newer, more advanced solution. In reality, these new technology requirements (like virtual meetings) help you discern the experts from the imposters.
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