America's Benefit Specialist November 2023

NOTEWORTHY

• providing ongoing support to answer employee questions • taying compliant and up to date on regulatory changes • seeking new solutions Many employers rely heavily on brokers to bring them cre ative benefits ideas and, now more than ever, employers are seeking new options. More than four in five employers (86%) would be interested in their advisor bringing them more innovative, non-traditional solutions like ICHRAs. And 83% would be more willing to offer an ICHRA if they had support from a dedicated vendor partner. “For employers who are looking for alternatives to group health plans but that still allow them to contribute to their employees’ coverage expenses, ICHRAs are emerging as an incredibly appealing option,” said Reeves. “With the right partner working in concert with their advisors to manage compliance, contribution strategies, and marketplace navi gation, ICHRAs really are meeting the needs of both employ ers and their employees.” For more information about this research, visit www.gravie. com/ichra. EMPLOYERS’ PERCEPTIONS OF EMPLOYEE ENGAGEMENT MAY NOT MATCH REALITY Nearly four in 10 employers (38%) increased the importance of career wellbeing in 2023, according to Gallagher’s 2023 Career Wellbeing Report. Even though this marked a five point year-over-year increase, career wellbeing was the least emphasized wellbeing initiative, falling behind employees’ emotional (74%), financial (49%) and physical (47%) wellbeing. “When employers provide their employees with clearly defined career trajectories, their workforces are more en gaged, retention rates climb and, most importantly, business outcomes improve,” said William Ziebell, CEO of Gallagher’s Employee Benefits & HR Consulting Division. “While this is common knowledge for decision makers, just four in 10 (43%) provide their employees with support in developing and pur suing a career path. That means there’s significant room for improvement. The purpose of this study is to help employers optimize their investment in career wellbeing through em ployee engagement and communication strategies.” Gallagher’s Career Wellbeing Report is the third install ment of the larger Workforce Trends Report Series. The research was conducted from December 2022 to March 2023, and sourced data and insights from a total of 4,030 organiza tions across the U.S. Employers often rely on incomplete data to measure employee engagement . The study found that more than half of employers agreed (49%) or strongly agreed (nine per cent) their employees were highly engaged. But it’s possible employer perceptions don’t accurately reflect employees’ feelings because just half of employers (51%) have conduct

NEW STUDY: EIGHTY-NINE PERCENT OF EMPLOYERS CONSIDERING ICHRAS FOR HEALTH BENEFITS SOLUTION OVER NEXT THREE YEARS Gravie released a new study in partnership with Wakefield Research that highlights a growing interest in Individual Cov erage Healthcare Reimbursements Arrangements among employers, even though some barriers are prohibiting them from offering this type of solution today. The survey, conducted in August, polled 500 health bene fits decision-makers at companies with 1 to 1,000 employees who don’t currently offer ICHRAs, to better understand their awareness, consideration and perceptions of this tax-advan taged health benefits option for their employees. Before taking the survey, approximately half (49%) of the respondents had not heard of ICHRAs, but most showed interest in learning more. Interestingly, respondents from midsize and large companies expressed the most interest in learning about ICHRA options (92% among those with 50-299 employees and 94% among those with 300-1,000 employees). “We know companies of all sizes can benefit from adopt ing an ICHRA to support their employees’ unique health and wellness needs,” said Gravie ICHRA General Manager Andrew Reeves. “The model is finally catching fire as an increasing number of businesses are turning to ICHRAs and looking for help navigating the individual market, managing contribu tion strategies and meeting compliance requirements.” According to the HRA Council, adoption of ICHRAs has more than tripled since they were introduced in 2020. De spite highlighting the need for more overall awareness and education, Gravie’s survey also indicated that the adoption rate for ICHRAs isn’t likely to slow down anytime soon. With medical trends increasing, the ability of employers to set a defined contribution toward their employees’ health benefits is a major part of the appeal. As many as 89% of benefits decision-makers who don’t currently offer them are considering ICHRAs for their em ployees over the next three years. Others are looking further out, with 87% of respondents agreeing that ICHRA could be a long-term fit for their company. While more benefits leaders are giving ICHRA a strong look as a potential new or expanded health benefits solu tion, many are stretched for time and resources. On average, they are spending nine hours per week managing health benefits for their company, and for nearly three in four (71%), managing health insurance is one of the most difficult parts of their job. Benefits managers have demanding jobs and over 80% of respondents consider each of these factors a barrier to embracing ICHRAs:

• helping employees navigate the marketplace • managing employee-contribution strategies

6 ABS | benefitspecialistmagazine.com