4 crucial HR trends and employee benefits to consider in 2021

Given the way 2020 has played out, it is hard to even attempt to figure out what 2021 will look like.

However, as we look back over the past nine months, we see how significant disruptions brought on by COVID-19 have changed the way we live, work and take care of ourselves. As we enter open enrollment season, it’s worth taking a look at how COVID-19 is shaping trends in benefits planning for the year ahead.

1. Zero copays, zero deductibles

Responding to the wave of employee discontent caused by ever-rising deductibles and cost-sharing, many employers are taking a radically different approach and are offering coverage that removes most deductibles and copays.

Sound too good to be true? It’s happening, gaining traction in the market and proving to be financially viable.

Throughout the last decade, high-deductible plans were seen as the primary plan design among employers, promising the flattening of the medical cost curve by creating a “skin in the game” effect. This promise has largely remained unfulfilled, while deductibles associated with employer-sponsored health benefits have risen rapidly to the current average of over $1,600 This is often well beyond what a typical worker has available in emergency funds.