Mar 30, 2021
In 2021, employers are continuing to offer more benefits and absorbing health plan cost increases to keep things consistent for employees. At the same time, they’re taking advantage of savings opportunities and income protection, according to a report by BenefitFocus.
Employers Are Expanding Benefits for A Multi-Generational Workforce
Nearly three-quarters of large employer groups offered a mix of traditional health plans (PPOs) and high-deductible health plans (HDHPs) for 2021, moving away from single health plan strategies. Voluntary benefit offerings continued to expand.
Employers Absorbed a Moderate Growth in Premiums
While employee health plan premiums saw only a slight increase between 2020 and 2021, employers are paying more as a percentage of the total premium in 2021.
HDHPs are catching up to traditional PPOs
PPOs are still the health plan of choice among employees, but HDHPs have grown in popularity across the board, with participation up 30 percent since 2018.
Younger Employees Like Consumer-Directed Health Care Accounts
Since 2018, the percentage of Gen Zers with an HSA has more than doubled. Gen Zers, Millennials, and Gen Xers increased HSA contributions by 10 percent or more in 2021.
