https://www.compandbenefitstoday.com/frs/23650923/combatting-the-effects-of-inflation--keeping-benefits-competitive-while-cutting-cost/email
After years of facing the global pandemic, we are now struggling with a new problem: inflation.
No one could have predicted the impact of inflation on employee benefits and how it affects both employees and employers. Employers are now trying to maintain or lower the cost of benefits while competing for talent in a competitive and tight labor market, but the rising costs of consumer goods and healthcare make it extremely difficult to consider increasing their benefit offerings.
Join total rewards leader Jaye Johnson for a breakdown of inflation's impact on employee benefits. You'll also learn actionable strategies to decrease cost while maintaining competitive benefits for your employees.
Learning objectives:
• Understand the rising costs of healthcare as a result of inflation and the state of specialty pharmacy drugs
• How not addressing employees' current needs can impact your organization
• How DEI programs impact employee benefits
• Steps employers can take now to offer valuable, cost-effective benefits while keeping costs low
Webinar - Payscale Innovation Unleashed: New features and data evolving the c...
Combatting the Effects of Inflation: Keeping Benefits Competitive While Cutting Cost
1.
2.
3.
4.
5. • 2020 to Now
• Introduction to Inflation
• Brief History
• Healthcare and Specialty Meds
• Current Challenges for Employers
• DEI and Employee Benefits
• Steps Employers Can Take to Reduce Costs While Being
Competitive
Agenda
9. Since the Global Pandemic, have you noticed a
cost increase in employee benefits within your
organization?
Poll Question
10. By Summer of 2022, the year-over-year increase in consumer
prices hit a new 40-year high of a whopping 8.6%!
(Source: U.S. Bureau of Labor Statistics)
%
12. Inflation in Healthcare
Over the Past 20 Years
*Monthly premiums include Employer and Employee Cost Share
(Source: Kaiser Family Foundation)
$292
$490
$550
$0
$100
$200
$300
$400
$500
$600
2003 2013 2023
Average Monthly Premium
Individual Plan
Average Monthly Premium
15. What’s in store for the rest of 2023 into 2024?
Expect to see an increase!
Factors:
• Deferred care for services
• Continued Covid testing, treatments, and vaccines
• Increased mental health and substance use care
• Overall after effect of choices made during the pandemic
• Lack of exercise
• Less than ideal food and beverage choices
• Increase in substance use cases
• More smoking
Led to worsening of overall U.S. population health and increased
spending.
17. Former Percentage of Total Medical
Spend for Employers
Current Estimated Percentage of Total
Medical Spend for Employers
Other Medical
~80%
Pharmacy
~35% - 45%
Other
Medical
~55% - 65%
Pharmacy
~18%-20%
18. Solutions to Reduce Rx Claims Cost
Step Therapy
• Requiring
lower tiered
options first
Quantity
Limits
• Caps set on refills
and drug quantity
Prior
Authorization
• Requiring doctor to
provide notice of certain
conditions needed for
approval
19. What percentage of your overall medical spend is
Pharmacy?
Poll Question
20.
21. Maintaining or lowering cost of benefits while competing
for talent in a competitive and tight labor market.
Current Challenge for Employers…
22. say stress from inflation and cost-of-living increases
negatively impacts their work productivity.
61% of employees
23. based in the U.S. are considering “beefing” up their
benefits and wellness offerings in 2023 and 2024.
2/3 of Employers
24. What is the #1 challenge you face when making
the decision to add or remove employee benefit
offerings?
Poll Question
25.
26. According to a study by Voya Financial, it was found that roughly
35% of employees
lack full understanding of any of the benefits they enrolled in during
their most recent open enrollment period.
27. DEI Benefit Considerations
• Paid Parental or Family Leave
• Mental Health offerings
• Allowances for fertility treatments
• Financial literacy and debt management
• Home purchasing
• Credit repair/building
• Retirement savings options
• Employee Resource Groups
38. Employees feel valued and have access to benefits
that they need. Returning focus to their work, showing
up more present, and motivated
=
Recipe for company success