Employee Benefits Trends 2024 | Lewis and Ellis LLC

As 2024 progresses, several emerging trends in employee benefits are becoming more prominent. Both insurers and employers should be aware of shifting circumstances to stay competitive with their product development and benefits offerings and to meet the evolving needs of today's workforce.

From an employer perspective, rising healthcare costs were the topmost concern (75%) over the past year, followed closely by:

• Employee health (71%).
• Delivering competitive benefits packages (66%).
• Providing compelling benefits for employees (57%).
• Employee financial wellness (54%).

Some of these figures are lower than the year before (2022) but reveal that there's still concern and work for employers and insurers to do to further drive these numbers down.

Here, we'll discuss the most prevalent trends to watch and plan for in the latter half of 2024 that will help you create sustainable strategies well into the future.

Top Employee Benefits Trends To Watch in the Latter Half of 2024

From programs focused on employee mental health and well-being to retirement planning, these are the top trends to watch in employee benefits:

1. Mental Health and Well-being Programs

According to Lyra's 2024 Mental Health Trends in the Workforce report, more than 1 in 3 benefits leaders say that employee mental health has declined over the last year — and that not everyone is getting the support they need to thrive.

Following this revelation, there will be an increased focus on mental health support for the remainder of 2024 and beyond. This may include increased access to counseling, mental health days, stress management programs and voluntary benefits that offer other mental health support services.

2. Telehealth and Other Alternative Health Options

In 2023, the Centers for Medicare & Medicaid Services (CMS) introduced widespread changes to coverage for telehealth services. As the popularity of this alternative method of care rose throughout the course of the pandemic — and continues to rise to meet demand — Medicare is now able to provide more reimbursements for these services, including therapy and mental health counseling.

Beyond telehealth, employers will continue exploring alternative options and preventive care strategies, such as:

• Employee Assistance Programs (EAPs): Counseling services, stress management resources and support for personal and work-related issues.
• Mental health apps: Subscriptions to mental wellness apps like Headspace or Calm.
• Regular health screenings: On-site health screenings for blood pressure, cholesterol, diabetes and other conditions.
• Vaccination programs: On-site flu shots and other vaccinations.

Telemedicine, Telehealth.

3. Improving Affordability and Shifting Toward Value-Based Care

As healthcare costs continue to rise, the pressure to balance employer costs with employee affordability puts a strain on both parties. In finding ways to navigate this complex challenge, employers must make coverage more affordable without sacrificing quality.

To achieve this, we're seeing an increasing shift away from the traditional fee-for-service model toward one that emphasizes value-based care — the primary goal of which is to improve the quality of care without increasing costs by:

• Focusing on outcomes: Providers are rewarded for helping patients improve their health, reduce the effects and incidence of chronic disease and live healthier lives in an evidence-based way.
• Providing patient-centered care: Care is designed around the needs and preferences of patients, emphasizing prevention and long-term health rather than just treating illnesses and conditions as they occur.
• Facilitating better care coordination: Value-based care promotes better coordination among different healthcare providers. This reduces redundancy, minimizes the risk of errors and ensures patients receive appropriate, timely care.

4. Financial Wellness Programs

According to a recent study by the Transamerica Institute, 77% of employees believe that financial wellness programs are a critical benefit, however, only 22% of employers offer them.

Beyond just financial wellness programs that combine elements of financial education, access to tools and resources and personalized financial coaching, there is room for greater opportunity to support employees' financial well-being. For example, employers may consider:

• Retirement planning support: Enhancing 401(k) or similar retirement plans with better matching contributions or offering tools and resources for retirement planning, including calculators and projection tools.
• Student loan assistance: Providing student loan repayment assistance programs where the employer makes direct contributions to the employee's loan balance.
• Debt management tools: Providing resources and tools to help employees manage and reduce debt, including debt consolidation services.
• Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs): Promoting the use of HSAs and FSAs to help employees save for medical expenses tax-free.

Flexible work

5. Personalized Benefits Packages and Supporting Employee Subpopulations

Customizable benefits options that allow employees to choose the benefits that best suit their needs are a major trend in 2024. Specifically, there's a large emphasis on implementing or extending benefits programs to better support employee subpopulations, such as BIPOC and LGBTQIA+ employees, according to Lyra's Mental Health Survey.

Additionally, SureCo's 2024 State of Employee Health Benefits Survey polled workers on coverage areas they would like to see their employers enhance or expand. Mental health benefits were far and away the most desired at 58%, followed by:

• Fertility treatment coverage (34%).
• Weight loss coverage (34%).
• Gastric bypass coverage (24%).

6. Flexible Work Arrangements

Flexible work arrangements are something many organizations and their employees have grown familiar with over the years — but just how necessary are they? A recent study revealed that a staggering 99% of organizations that deployed a back-to-office mandate were met with a drop in employee satisfaction.

Given that statistic, it's safe to say that flexibility is still — and will continue to be — a major benefit for employees. If you've yet to take work-life balance into account or believe that there's still some work to do to create an attractive flexibility benefit, here are a few ideas:

• Flexible work hours: Implement flexible start and end times, allowing employees to choose their work hours within a set range.
• Remote work options: Enable employees to work from home either full- or part-time, providing the necessary technology and resources to support them.

The Role of Employee Benefits in Enhancing Culture

With these employee benefits trends in mind, it's important to consider how they affect not just individual employees but the workplace culture as a whole.

In the grand scheme of your business, your benefits offering is more than just a form of compensation — often indirectly communicating your values as an employer. A strong benefits package does a lot to demonstrate that a company cares about its employees' well-being beyond just a paycheck, which can increase employee morale and loyalty as they feel valued and appreciated.

Moreover, benefits covering physical and mental health needs show employers prioritize employee well-being. This is paramount to building a culture of openness and support where your talent feels comfortable seeking the help they need when they need it.

Building Strong Benefits With Employees in Mind

Benefits have grown increasingly difficult to manage. Higher healthcare costs and growing demand for more personalized offerings make it challenging for employers to effectively balance cost and coverage without proportionally increasing financial burdens on employees.

At Lewis & Ellis LLC, our experts offer cost-effective actuarial support. We'll help you craft appropriate and sustainable reserves for self-funded health plans and develop a comprehensive understanding of cost implications and potential savings tied to various benefit options, including:

• Life.
• Medical.
• Long-term care.
• Retirement.
• Workers' compensation.
• And more.

Make the most out of your employee benefits package while remaining compliant and optimizing costs at every turn. Contact us today to get started.