Analysts say a program could crowd out private insurers or play alongside them.

The general perception has been that the pandemic would radically increase employees' appreciation of benefits and possibly increase their need for certain benefits, but how benefits may evolve based on these changes remains unclear.

CSAA's Melissa Jones highlights issues for managing a hybrid workforce and discusses employee benefits in the latest Insurance Speak podcast.

The estimate is roughly $400 million lower than last year's record high of $2.5 billion.