With the end of the year in sight, Mployer Advisor recently brought together two seasoned employee benefits brokers to discuss best practices and strategies to consider as we move into the new year during a live webinar event.
Richard Kosinski, the Owner of Brio Benefit Consulting, and Brandon Ernstes, an Employee Benefits Advisor at Houchens Insurance Group, joined Mployer Advisor to discuss overall benefits design strategies and trends, analyze the impact of record premium increases alongside inflation, and outline best practices moving into 2023.
Below are a few highlights from the webinar event.
The first overarching theme of the year discussed by the speakers was the dramatic economic downturn and near-record inflation. Specifically, our speakers discussed the concern among HR leadership and employees alike surrounding financial security, as well as the correlation between general inflation, medical inflation, and rising insurance premiums.
Other notable themes and trends, which will likely follow employers into 2023 and beyond, is the renewed focus on mental health benefits and financial wellness.
In fact, according to a recent study, an incredible 82% of employers recently expanded mental health benefits. Additionally, employers who offered financial wellness programs or benefits from 2018-2020 saw an 18.8% increase in retention among salaried workers.
Although other trends were discussed at length, one unanticipated item that sent ripples through the industry was the overturning of Roe v. Wade earlier this year.
Both Kosinski and Ernstes spoke to the dramatic effect that caused among employers who were forced to rethink their benefits offerings, as well as how to appropriately respond to employee concerns and questions surrounding the Dobbs decision.
Also of note: A recent survey found that 30% of employees are considering leaving their organization because of how it responded to Roe v. Wade being overturned. Among respondents aged 18-34, this number jumped to 39% (34% women and 44% men).
Another major theme of the webinar centered around the impact of premium rate changes for 2023.
This upcoming year will see an average of a 6.2% increase across the country. For comparison, the increase from 2021 to 2022 was 3.5%, and the increase from 2020 to 2021 was only about 1.2%, according to filings with individual state departments of insurance.
Insurance premiums are increasing because of rising medical care costs, prescription drug costs, and increases in healthcare utilization. Plus, this coming year’s rates will be especially high due to record inflation, as described above.
The ten largest rate increases for this upcoming year all break into the double digits and include the following states:
What’s more, 11 total states have rate increases above 10%. Idaho and Virginia were the only states to have decreases.
To see the full list, click here.
For more in-depth information, tune in to watch the complete, on-demand webinar, “Best Practices and Considerations Surrounding Employee Benefits for 2023.”
If you haven’t yet, be sure to scroll through Mployer Advisor’s past webinars by searching through our library of on-demand content.
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