While many HR and benefits leaders are rightly focused on responding to the COVID-19 crisis as it impacts their organizations today, it’s also necessary they begin to plan for the obstacles ahead. One key area where these obstacles will arise is in employee health benefits. Current trends in employee health and plan usage will likely cause unexpected changes — including a surge in health complications and costs — for the coming months.
The first half of 2020 has been different from any other year, and the second half will be just as challenging. By getting the full picture of today’s challenges and their impact on the future, HR and benefits leaders can equip themselves to optimize plan management and make accurate midyear changes as needed.
Current Gaps in Care Could Lead to Increased Complications
Social distancing and shelter-in-place policies have led to a stark decrease in the volume of health claims this spring. Many healthcare providers have even delayed appointments for preventative visits, elective procedures, and routine checkups.
This lack in preventive and regular care could cause some individuals to develop chronic conditions, like diabetes, hypertension, COPD, or asthma. And for the 6 in 10 Americans who already have a chronic illness, they could develop increased complications and comorbidities.
In fact, our data shows 11% of all members at companies in the Springbuk Health Intelligence platform have a gap in care — which means they’re not adhering to their normal routine of medications, physician visits, or regular tests and screenings.
As stay-at-home orders are pulled back and people resume their regular health activities, employers may very likely see an increase in health complications and new diagnoses.
A Lull in Healthcare Costs Could Lead to a Spike
Despite potential increases in health costs directly tied to COVID-19, current overall costs for employers are likely down. However, the second half of 2020 could make up for it.
The increased health complications among employees are likely to be compounded by an uptick in preventive and elective procedures — eye exams, wellness checks, and more — as people come out of isolation and get their regular health activities back on track. This combination of trends will likely cause large increases in costs for the last two quarters of 2020.
Layoffs (Even at Other Companies) Could Cause Population Changes
Unemployment has risen by the millions, and it may continue to rise as companies feel the impact of decreased revenue. These mass changes in employment may affect organizations in one of four ways:
- Layoffs (requiring mass offboarding and decreasing plan members)
- Furloughs
- Reduced hours (which may affect benefits enrollment, depending on the policy)
- New dependents (due to employee spouses and children experiencing layoffs)
That last point may be the most surprising. As people experience layoffs, furloughs, or reduced hours where they work, they may now choose to come on board their spouses’ or parents’ organizations’ health plan. All of these changes are very likely a set of costs employers didn’t plan for last year as they were designing their benefits plans.
Isolation Could Cause Problems for Mental Health
The CDC reports that even before the pandemic, 1 in 5 Americans had a mental illness. Social distancing or quarantining may limit these individuals’ access to management resources and worsen their conditions, or even cause new issues for people with no previous diagnosis. Whether due to the threat of infection, economic instability or job loss, financial hardships, or social isolation, fear, anxiety, and stress are common.
Of course, the strain on mental health could lead employees to seek help from mental health professionals or well-being services. For companies that don’t already have an EAP, now may be the time to consider one.
As we explored in our Employee Health Trends study, mental health conditions — and especially the high rate of people who have mental health and chronic physical conditions — cause extremely high costs for employers and members. Now that many organizations and individuals are already feeling the weight of the economic downturn, these additional costs could be especially burdensome.
Each of These Changes Means an Influx in Claims and Employee Requests
The workload for HR and benefits leaders right now is probably incredibly full due to communications, midyear plan changes, and other crisis responses. No doubt, this is likely to continue long after things return to “normal.” In addition to managing this year’s administrative burdens of surging claims, onboarding and offboarding employees, and implementing new offerings like EAP or telehealth solutions, leaders will also likely be juggling plan changes and design for 2021.
Employees and members will also have plenty of questions and requests for support, even as the year goes on. Due to a high level of economic uncertainty and fear, they may even feel dissatisfied or nervous about the organization’s decisions, and even about the company’s future. All of this will make clear communication and strong support for employees more critical than ever before.
5 Key Steps to Prepare
It may feel daunting to look at the continued change for the next year, but HR and benefits leaders shouldn’t overlook all the problems they’ve already overcome. With the right planning and insights, they can lead their organizations to handle these challenges effectively.
Here are a few key steps that HR and benefits leaders can take to prepare:
- Identify Gaps in Care: Take a look at your organization’s population data to identify which segments are not getting the care they need right now. Consider applying targeted communication strategies, telehealth opportunities, and even disease-management solutions to help your members stay or get back on track.
- Consider Plan Changes: Monitor your claims data to see how these trends are affecting your population and consider whether midyear plan changes are necessary to account for cost changes throughout 2020.
- Prepare for Population Changes: Start monitoring your data now to forecast costs and administrative needs due to changes in enrollment, and to accurately prepare for your 2021 plan design.
- Support Mental Health: Communicate consistently with your members to help them feel connected, supported, and aware of any resources available to them, such as an EAP or well-being service.
- Equip Your HR and Benefits Teams: Start preparing now for increased workloads or added responsibilities by setting up any tools and processes your team may need to work even faster, more nimbly, and more efficiently.
Now more than ever, employees and organizations need HR and benefits leaders who can take proactive, preventive steps to protect their health and financial well-being. By considering not only the current difficulties, but the ripple effects down the line, HR and benefits leaders can improve their plans for supporting employees and maximize their organization’s investment.
