{"id":19614,"date":"2020-09-18T09:10:07","date_gmt":"2020-09-18T13:10:07","guid":{"rendered":"https:\/\/www.benefitscanada.com\/news\/u-s-employers-maintaining-health-benefits-considering-other-cost-cutting-measures-survey-150002"},"modified":"2020-09-18T09:10:07","modified_gmt":"2020-09-18T13:10:07","slug":"u-s-employers-maintaining-health-benefits-considering-other-cost-cutting-measures-survey","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/09\/18\/u-s-employers-maintaining-health-benefits-considering-other-cost-cutting-measures-survey\/","title":{"rendered":"U.S. employers maintaining health benefits, considering other cost-cutting measures: survey"},"content":{"rendered":"
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Staff<\/span> | September 18, 2020 <\/p>\n

U.S. employers are planning to maintain core health benefits but are exploring other changes to preserve jobs and manage expenses, according to new a new survey by Arthur J. Gallagher & Co.<\/p>\n

The survey, which looked at data from nearly 4,000 employers over several months, found close to half have planned salary freezes for management and executives (43 per cent) and non-management personnel (42 per cent) in order to preserve jobs in 2021.<\/p>\n

Following the outbreak of the coronavirus, 83 per cent of employers said they strongly emphasized specific benefits within their total well-being package, including emotional well-being supports (65 per cent), leave policies (47 per cent), medical benefits (39 per cent) and physical well-being benefits (36 per cent).<\/p>\n

Read: Employers concerned about retaining valued staff amid salary cuts, freezes: survey<\/a><\/strong><\/p>\n

However, the pandemic hasn\u2019t forced employers to make mid-year adjustments to coverage, with 86 per cent of employers saying they hadn\u2019t reduced health benefits and didn\u2019t plan to during the crisis. More than two-thirds (79 per cent) said they expect to continue the same health coverage into 2021.<\/p>\n

\u201cOver the last decade, a tightening labour market led employers to offer a robust holistic rewards strategy to win the war for talent, but the pandemic has forced decision-makers to closely examine their benefits and compensation strategies,\u201d said William Ziebell, chief executive officer of Gallagher\u2019s benefits and human resources consulting division, in a press release. \u201cEmployers are reviewing their benefits offerings to make sure they address employees\u2019 evolving needs and, at the same time, fit within their organizations\u2019 budgets.\u201d<\/p>\n

The survey also found employers are continuing to see the high cost of medical services (67 per cent) and specialty drugs (41 per cent) as their biggest cost-management concerns. Gallagher speculated those challenges, along with pandemic-related concerns about higher operating costs and lower revenues, could force organizations to adjust their 2021 benefits and compensation offerings.<\/p>\n

Read: U.S. employers increasing focus on virtual care, mental health in 2021: survey<\/a><\/strong><\/p>\n

Employers also expressed interest in re-evaluating less commonly used health-care tactics to reduce costs, such as plan eligibility audits (18 per cent) and claim audits (15 per cent), as well as value-generating tactics such as preferred provider networks (14 per cent) and integrated health and disability management programs (nine per cent).<\/p>\n

Almost a third (31 per cent) of employers reported using at least one value-based option in their benefits plans, which rose to 58 per cent when looking specifically at large employers. Even before the pandemic, telemedicine was considered the top health-care cost-control tactic in 2020, with 59 per cent of employers saying they provide the service.<\/p>\n

In July, 26 per cent of employers said they\u2019d modified their paid-time-off policies, with a further 16 per cent contemplating the move. While just three per cent said they offer unlimited paid time off, Gallagher noted it could be a creative way to support organizational well-being and motivate employees, while eliminating the cost of cashing out any remaining balances during the paid-time-off period or at retirement.<\/p>\n

Read: Pandemic blurring work-life lines a recipe for employee burnout<\/a><\/strong><\/p>\n

Read the full article at BenefitsCanada.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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