Employers’ benefits policies are led by trends in health insurance, which, in turn, are driven by ACA legislation and past/present cost controlling challengers.
Industry Issues
Employee benefits providers are facing three daunting challenges: 1) changing employee demographics; 2) employers battling rising health benefit costs; and 3) employers are covering fewer staff. Addressing these challenges sooner rather than later opens up new roads for market expansion.
Key Findings
- The percent of employers offering benefits dropped significantly between 2000 and 2014 and has remained flat since — event though the overall economy is improving.
- Employers’ benefits policies are led by trends in health insurance, which are driven by ACA legislation and past/present cost controlling challenges.
- Though providers are trying to create more effective benefit communications, the messages are not getting across… Enrollment rates are often a derivative of employers’ funding methods, versus the value of these products to employees.
