America's Benefit Specialist June 2023

NOTEWORTHY

New data from LegalShield shows that 81% of employees would welcome ongoing communication about their benefits throughout the year, with 47% feeling unprepared to make informed decision about enrollment choices during open enrollment. The survey also revealed that non-traditional voluntary benefits, like legal and identity theft protection, are in demand. Of the respondents, 42% had legal matters in 2022, with 68% interested in enrolling in a legal benefit plan. Fur thermore, 60% of employees had been subjected to identity theft attempts, with 51% interested in identity theft protection benefits. Employers who listen to their employees’ needs and provide ongoing communication and education about benefits can empower them to make informed decisions, while non-traditional voluntary benefits can attract and retain top talent. “The norm in today’s world is to be constantly connected and have access to information. Employers must commu nicate employee benefits in a relevant and timely manner to keep their workforce informed and help them make decisions that align with their needs,” said Emily B. Rose, LegalShield’s SVP of broker & partnership sales. “Regular ben efit communication ensures employees are aware of their options.” The survey was conducted on January 20 and surveyed 858 full-time employees enrolled in benefits through their employer. The sample was balanced by age and other demo graphic variables, according to the U.S. Census. To learn more, visit LegalShield.com. NEXT-GEN WORKERS ARE MOST IN NEED OF MENTAL HEALTH SUPPORT New research by The Hartford found Gen Z workers are the most in need of mental health support compared to oth er generations. Fifty-three percent are highly stressed in a typical week and 44% feel depressed or anxious at least a few times per week—yet are less likely to believe their employers care greatly about their mental health (51%). Also, Gen Z work ers are more likely than other generations to report stigma prevents them from seeking mental health care (41%). While the youngest generations in the workplace are more likely to say their mental health affects their productivity (38% Gen Z and 32% Millennials), the oldest generation in the workplace are less likely to report mental health impacts (Baby Boomer, eight percent). The Hartford’s research could foretell an even greater effect on worker productivity and the bottom line of businesses, as an estimated 75 million Boom ers are expected to retire by 2030—the year the U.S. work force is projected to be two-thirds Millennial and Gen Z. “The stakes could not be higher,” said The Hartford’s Chair man and CEO Christopher Swift. “The future of work depends on meaningful action today to support next-gen workers’ emotional and mental well-being. Employers have the power to transform mental health through empathetic leadership,

premium growth attributable to an increase in lives covered by stop-loss as more groups convert to self-funded medical plans from fully insured ones, coupled with rate increases. Additionally, more small groups have been purchasing stop loss insurance through level-funded products, which com bine the flexibility of a fixed monthly cost for the employer with aspects of self-funding, including stop-loss protection. However, the report notes that with the rising number of costly medical treatments, the amount of the claims covered by stop-loss carriers also has been rising. “The number of million-dollar claims has increased by nearly 50% since 2018 at some companies, while other companies have reported that million-dollar claims account for a quarter to a third of total claims paid the last three years—more than double the average of the preceding four years—pressuring costs and leading to a rise in the use of reinsurance,” said Doniella Pliss, director, AM Best. “Cell and gene therapies have been frequently named as the top generator of catastrophic claims by AM Best-rated companies.” The segment’s use of reinsurance remains very limited, according to the report, but primary carriers have reported a significant increase in the number of stop-loss claims hitting reinsurance, raising the possibility that reinsurance carriers could establish limitations on how cell and gene therapies are covered. The segment’s loss ratio also generally has been rising, to 85% in 2021 from 74.2% in 2014, with fluctuations during the several years in between, and a contributing factor has been the introduction of new expensive specialty drugs. The FDA in 2023 already has approved more than 10 special ty drugs, and although the annual costs for drugs approved in 2019-2022 were lower, the diagnosis prevalence has been much higher. “Prescription drug costs as a share of total claims paid have grown roughly 100 basis points each of the last four years,” said David Lopes, senior industry analyst, industry research and analytics, AM Best. “To help manage costs, carriers are using carve-outs and manufacturers’ assistance programs, as well as regularly reviewing data and implementing outcome-based agreements.” To access the market segment report, visit www.ambest. com. OPEN ENROLLMENT COMMUNICATION DOESN’T CUT IT FOR EMPLOYEES Today’s employees want more control over their benefits packages, with ongoing communication and education to make informed decisions that cater to their unique needs and those of their families. Unfortunately, a recent report found that employees spend only 18 minutes enrolling in their benefits, risking missed opportunities for valuable benefits that improve their overall well-being. Comprehen sive benefits education is crucial for financial, physical and emotional health.

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