As the COVID-19 pandemic continues to wage on, its effects on benefits planning for next year are being felt—especially as open enrollment season approaches. According to Mercer's Global Survey #5, 20% of employers surveyed said updating benefits programs to better meet employee needs was an HR area in which companies are seeing an increased need for support. In addition to considering plan design changes, employers are having to evaluate and adjust their benefits packages for 2021. Some of the most common changes being made for the 2021 enrollment season are outlined in this article. Potential Cost Increases and Plan Designs Employers and benefits experts are bracing for cost increases headed into 2021. Health care premium costs have increased at a steady rate over the past few years, with the most recent average increase being around 6%. Actuaries at Willis Towers Watson predict up to a 7% increase in health care premiums in 2021 for both self-funded and fully insured employers. ...

As the COVID-19 pandemic continues to wage on, its effects on benefits planning for next year are being felt—especially as open enrollment season approaches. According to Mercer's Global Survey #5, 20% of employers surveyed said updating benefits programs to better meet employee needs was an HR area in which companies are seeing an increased need for support. In addition to considering plan design changes, employers are having to evaluate and adjust their benefits packages for 2021. Some of the most common changes being made for the 2021 enrollment season are outlined in this article. Potential Cost Increases and Plan Designs Employers and benefits experts are bracing for cost increases headed into 2021. Health care premium costs have increased at a steady rate over the past few years, with the most recent average increase being around 6%. Actuaries at Willis Towers Watson predict up to a 7% increase in health care premiums in 2021 for both self-funded and fully insured employers. ...

Health benefits costs are almost certainly going to rise in 2021. They’ve been trending upward for years—over 50% in the last decade, according to the Kaiser Family Foundation— and the current state of economic uncertainty over COVID-19 won’t slow things down. Realistically, after enduring months of business closures and managing exhausted workforces, many employers will be lucky to maintain uninterrupted operations. That’s why it’s critical for employers to think about reducing health costs right now—figure out cost-effective benefits first so money can be shuffled as needed later. Having a solid plan going into 2021 will better position organizations facing limited budgets. Here are five cost-reduction strategies employers should explore: 1. Dig Into Health Costs Employers don’t let themselves overpay for the materials they use during production, so why is health care any different? Employers should look into every health care figure they can, from overall premium costs to individual...

Health benefits costs are almost certainly going to rise in 2021. They’ve been trending upward for years—over 50% in the last decade, according to the Kaiser Family Foundation— and the current state of economic uncertainty over COVID-19 won’t slow things down. Realistically, after enduring months of business closures and managing exhausted workforces, many employers will be lucky to maintain uninterrupted operations. That’s why it’s critical for employers to think about reducing health costs right now—figure out cost-effective benefits first so money can be shuffled as needed later. Having a solid plan going into 2021 will better position organizations facing limited budgets. Here are five cost-reduction strategies employers should explore: 1. Dig Into Health Costs Employers don’t let themselves overpay for the materials they use during production, so why is health care any different? Employers should look into every health care figure they can, from overall premium costs to individual...

Student loan debt affects the financial lives of millions of American workers. Employers feel the burden as well, and have the opportunity to help reduce it.  The impact of student loan debt on employees According to a recent Forbes article : 44.7 million Americans have student loan debt; student loan debt is second only to mortgages in consumer debt, at a staggering $1.56 trillion; the average student debt is $32,731 with an average monthly payment of $393; 2.8 million borrowers are in forbearance; 5.5 million borrowers are in default. Stats like these demonstrate why student loan debt impacts if and how people save for retirement. Its impacts are numerous. Student loan debt causes people to put off expenses like starting families, buying or leasing a car, buying a home and saving for retirement. It burdens individuals of all demographics, with 14.1 million borrowers between the ages of 35 – 49 . That means many middle-aged workers are still paying off student loan debt while wo...

Student loan debt affects the financial lives of millions of American workers. Employers feel the burden as well, and have the opportunity to help reduce it.  The impact of student loan debt on employees According to a recent Forbes article : 44.7 million Americans have student loan debt; student loan debt is second only to mortgages in consumer debt, at a staggering $1.56 trillion; the average student debt is $32,731 with an average monthly payment of $393; 2.8 million borrowers are in forbearance; 5.5 million borrowers are in default. Stats like these demonstrate why student loan debt impacts if and how people save for retirement. Its impacts are numerous. Student loan debt causes people to put off expenses like starting families, buying or leasing a car, buying a home and saving for retirement. It burdens individuals of all demographics, with 14.1 million borrowers between the ages of 35 – 49 . That means many middle-aged workers are still paying off student loan debt while wo...

Congratulations to Cobleskill Regional Hospital on being named PLANSONSOR’s 2020 Plan Sponsor of the Year in the nonprofit defined contribution <$500 million category! Cobleskill's 403(b) plan focused on employees’ wellness. This goes beyond physical wellness and influences the 403(b) plan’s design and approach to educating employees. “Retirement readiness and financial wellness are woven into the fabric of our culture,” says Christine Pirri, vice president, nonclinical operations. As their plan adviser, HANYS Benefit Services meets often with Pirri and Cobleskill employees for a financial wellness check-up and to explain how a defined contribution plan gives an employee the ultimate responsibility for his own retirement outcome “Once people get that message, they’re much more interested in understanding, ‘How can I make this work?’” says Carol Idone, vice president, consulting, HBS. The Plan Sponsor of the Year annual award program recognizes retirement plan sponsors that sh...