Employers may look to switch their health insurance providers
As the economic crush of Covid-19 continues to be felt, Pacific Prime warns that employers will be adopting a ‘cost-cutting mindset’ when it comes to employee benefits
Pacific Prime’s Global Employee Benefits Trends Report 2020 explores the top benefits trends globally and the various factors influencing their popularity. Due to rising healthcare costs, employees are looking for peace of mind – and this can be provided through their employee benefits plans. But as an increase in the group health insurance premiums is on the cards, and it’s teamed with the devastating economic impact of Covid, employers are likely to refine and reassess their group health insurance policies.
Pacific Prime cites the key factors influencing the global employee benefits landscape as being:
- Covid-19 pandemic
- Soaring unemployment
- Increasingly multi-generational workforce
- Greater focus on diversity and inclusion
Employers may seek to narrow their provider network
According to PP’s report, Deteriorating economic conditions and rising business uncertainty are leading employers to adopt ‘cost-cutting mindsets’, which could cause them to seek to contain group health insurance premiums by introducing co-pays, switching health insurance providers, narrowing their provider network and more.
“Employers should be wary of switching to lower quality insurers, as they may end up facing a whole host of administrative and claims issues further down the line,” said Neil Raymond, CEO and Founder at Pacific Prime.
Mental health coverage increasingly offered by employers
Pacific Prime noted that, this year, mental health benefits are being offered by an additional 26 per cent of companies in the US. In 2019, almost 90 per cent of organisations offered this benefit, Pacific Prime noted.
This is hardly surprising considering that more employees feel isolated due to lockdowns, and are increasingly struggling to balance their work and home lives due to the ‘always on’ nature of working from home.
Perhaps international health insurers keen to retain or else obtain contracts to supply businesses’ employee benefits should ensure that their mental health offerings are at the top of the list, and that their full suite of services cater to a diverse and multi-generational workforce.