America's Benefit Specialist October 2022

BENCHMARKING: THE PANDEMIC’S

EFFECT ON EMPLOYEE BENEFITS

By Arwyn Robinson Director of Marketing Advanced Benefits Coeur d’Alene, Idaho arwyn@trustab.com

As we emerge from the COVID-19 pandemic, we are beginning to see the long-term impact that has been made on the employee benefits landscape. According to the Kaiser Family Foundation’s 2021 report, 31% of employers with 50 or more employees ex panded the ways through which enrollees could get mental-health or substance-abuse services, such as through telemedicine, and 16% developed new resources, such as an Employee Assistance Program. These enhancements were timely, as 12% of employers with at least 50 employees, including 46% of firms with 5,000 or more employees, saw an increase in the share of employees using mental health services since the pandemic began. KEY REGIONAL FINDINGS

THE TRENDING RISE IN COST It’s no secret that healthcare is one of the fastest increasing line items on the average American employee’s and employ er’s budget. In fact, according to a study published in January of this year, in 2020 an employee’s total potential premium and deductible exposure averaged 11.6% of median income. This includes 6.9% in employee premium contribution and 4.7% in deductibles. However, states varied greatly in median income spent on premiums and deductibles, the highest being Mississippi at 19%. Idaho was above the national average at 12%. To put that into context, the average median income in Idaho in 2020 was $66,499, with a premium and deductible exposure of $7,979. According to the 2021 Kaiser Family Foundation’s Annual Benchmark Report, the average single and family premiums increased four percent over the past year. During this same period, workers’ wages increased five percent, with inflation increasing 1.9%. This means that workers were not able to stay ahead of the rising cost of healthcare.

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