At a time when everything seems to cost a little more, employees may be hesitant to use health care services — especially if they do not know the cost beforehand. For many, cost can be a top barrier to accessing health care. In fact, 7.1% of Massachusetts adults avoided health care due to costs in the previous year, according to the 2023 America’s Health Rankings report.¹ While across the U.S., 43% of insured working-age adults with employer-sponsored health plans said it was very or somewhat difficult to afford their health care.²

People who do not pursue needed health care may run the risk of poorer outcomes that can exacerbate chronic conditions and may drive increased medical costs. Fifty-four percent of people with employer-sponsored coverage who reported delaying or forgoing care because of costs said a health problem of theirs or a family member got worse because of it.³

By 2030, all Baby Boomers in the U.S.—those born between 1946 and 1964—will have turned 65, with about 11,000 of them coming of age every day until then.¹ But as these workers make the transition to retirement, one concern that’s top of mind for many is how they will obtain and pay for health care. “People are generally a little uncomfortable thinking about health care in retirement because they are going into the unknown, it’s complex, and people fear doing it wrong and paying huge penalties,” one benefits leader said. “It’s important to find a way that makes it simple for people to understand and less scary.”

When employees don’t see a sustainable path to pay for health costs, they may delay retirement.² Nearly one in five reported that they had done so to keep their insurance, which can hinder new recruitment and increase overall employer health costs.³ The question for employers is no longer why they should support employees in the transition to retirement, but how they can best smooth the path forward. Here, we’ll examine the challenges workers face as they enter this new phase of life, and the ways that employers can help these employees make a soft landing into retirement.

"Benefits by Life Stages" was the overwhelming response to a recent NEEBC survey gauging interest in various benefit topics.  Perhaps this response shouldn’t be a surprise.  For the first time ever, workplaces may have up to six generations in their workforce¹, spanning across as many life stages².  While each generation is typically at a different life stage with unique benefit priorities, there may be some overlap.  As shown in the diagram³ below, each stage has unique employee benefits priorities. Recognizing and addressing these diverse needs – both by life stages and generations – and reconsidering a one-size-fits-all approach to plan design may lead to a more engaged, satisfied, and loyal workforce.

Characteristics and Recommended Employee Benefits
by Life Stage

Navigating the intricacies of Flexible Spending Accounts (FSAs) can be challenging for both employers and employees. Typically, there are three types of FSAs:

1. Traditional Medical FSA
2. Limited Purpose Medical FSA: For employees with a High Deductible Health Plan (HDHP) and an HSA, allowing them to set aside pretax funds for vision, dental, and orthodontia expenses.
3. Dependent Care FSA: For employees who pay for eligible services such as preschools, summer day camps, or after-school programs.

According to SHRM’s 2023 Employee Benefits Survey, 62% of employers offered an FSA plan to their employees. Despite the popularity of FSAs, a recent report from the Employee Benefit Research Institute (EBRI) reveals a concerning trend: a significant increase in FSA forfeitures, with over 50% of Medical FSA participants leaving unused funds in their accounts by the end of 2022.

Reflecting on an insightful and engaging experience at the New England Employee Benefits Council’s recent conference, “Innovation in Employee Benefits: The Power of Progress,“ which focused on innovative benefits (including a breakdown by many life stages), point solution fatigue,  AI, and strategies to help control expenses without compromising coverage.  It was truly inspiring to be surrounded by a community of brilliant minds, all dedicated to the shared mission of helping our clients – countless organizations around the region and beyond – and their employees navigate the complex landscape of benefits with strategic vision.

The discussions around Point Solution fatigue resonated deeply, highlighting the challenges organizations face in managing an overwhelming array of solutions. In the era of information overload, employers must find a balance between value and confusion, which makes streamlining and optimizing benefits through innovative approaches paramount.  In the quest to tailor benefits packages for employees, employers are increasingly turning to targeted solutions to add a personalized touch. However, they face the delicate task of balancing customization with the risk of inundating employees with an excess of choices leading to less impact, and costs becoming a deterrent without a true ROI.

National and multistate employers have a lot to think about when it comes to administering paid leave in a compliant manner. In the ever-changing landscape of statutory leaves, employers are forced to monitor new laws and changes to existing laws and be ready to implement those changes around their existing benefits. I previously faced these challenges directly while working on the employer side for two large, national employers, and now focus on analyzing these regulations to help clients operationalize compliant leave and disability processes.

If you are an employer with a national footprint, or even one with employees in multiple states, it can be quite a challenge to keep up. Many mandating states make annual changes that impact employer and employee contribution rates, benefit amounts, notice requirements, and other statutory changes that impact eligibility and entitlements under each state’s program.

February is Cancer Prevention Awareness Month, and to many employers, that likely sounds like yet another opportunity to highlight standard prevention advice: quit smoking if you smoke, prioritize fresh foods and exercise, and make sure to follow cancer screening guidelines. But the truth is that there is much more to this issue than this one-size-fits-all advice. Increasingly, health experts and employers alike are discovering that no standardized message is enough to adequately solve this persistent problem.

FAST FACTS:
- A little over 2 million Americans are diagnosed with cancer each year, and more than 600,000 die from the disease, according to the American Cancer Society.^[1]
- Research suggests that less than half of cancers can be prevented by a healthy diet and lifestyle alone.^[2]
- Only 14% of diagnosed cancers in the U.S. are detected by a recommended screening, per research from the University of Chicago.^[3],[4]