• Close
  • Members
  • Employers & Fund Administrators
  • Brokers
  • About Us
    • Leadership
    • A.M. Best Rating
    • News
  • Solutions
  • Forms
  • FAQs
  • News
  • Blog
  • Careers
  • Contact Us
  • About Us
    • Leadership
    • A.M. Best Rating
    • News
  • Solutions
  • Forms
  • FAQs
  • News
  • Blog
  • Careers
  • Contact Us
Amalgamated Life Amalgamated Life
  • Members
  • Employers & Fund Administrators
  • Brokers

Latest Voluntary Benefit Trends Affecting Employers

Share:
July 6, 2020
Colleagues discussing data printouts in a meeting

For anyone who may have questioned their staying power, voluntary benefits continue to grow in popularity with both employers and employees. While there are more choices in voluntary benefits, the latest data suggests certain products continue to be most favored. According to the DirectPath and Gartner 2019 Medical Trends and Observations Report, dental, vision, short-term and long-term disability remain the most popular voluntary benefits. Currently, 75% of employers offer dental and vision, 66% offer long-term disability, and 50% offer short-term disability. Other voluntary benefits are realizing increased interest as well. The report noted that in 2019, 75% of employers offered supplemental life compared to just 45% in 2018. Similarly, growth in legal services grew from 37% to 46%, accidental death and dismemberment insurance grew from 27% to 60%, and identity protection grew from 19% to 25% from 2018 to 2019. Rounding out the areas of growth in voluntary benefits being offered by employers were auto insurance, home owners’ insurance and pet insurance.

Another notable trend is the growth in small employers now offering voluntary benefits which were once the exclusive domain of larger organizations. These smaller businesses have come to recognize that offering comparable benefits was necessary to attract and retain high caliber employees. In order to do so, many contract with a Certified Professional Employer Organization (CPEO) which serves as a total HR outsourcing partner handling payroll and tax administration, employee benefits administration, risk management and workplace regulatory compliance.

What are some of the other key trends in voluntary benefits affecting employers? Here’s a rundown:

  • Voluntary benefit plans are being designed to accommodate today’s multi-generational workforces.
  • Individual Coverage Health reimbursement arrangements (ICHRAs) are serving as an alternative to group plans, particularly for employers in cities with healthy individual markets wherein employers can fund the employees’ ICHRAs with pretax dollars and employees can use them to purchase health coverage on a public exchange.
  • More employers are beginning to realize that high-deductible health plans are not meeting the needs of their employees and therefore, they are doing away with this option. In its place, there is the growing trend toward direct contracting with healthcare providers, enabling employers to negotiate costs to keep expenses down.
  • Student loan assistance and mental health benefits also are on the rise. In 2019, 8% of employers were offering student loan repayment benefits; up from 4% in 2018.  Additionally, a 2019 survey conducted by the nonprofit group, National Business Group on Health, which represent large employers, found that approximately 48% of its respondents were deploying training and anti-stigma programs for their managers to help them better identify employees’ mental health problems and provide appropriate assistance.

It’s clear from the latest findings that voluntary benefits are here to stay, but continuing to evolve to meet changing market needs.

Related Posts
  • Insurance Industry Embracing Advanced Technologies
  • Healthcare and Medical Plan Costs Projected to Rise in 2023
  • The Importance of Financial Security

914.367.5000

333 Westchester Ave., White Plains, NY 10604

© 2023 Amalgamated Life. All Rights Reserved.
Notice of Privacy Policies Terms & Conditions Privacy Policy Fraud Prevention Sitemap

LinkedIn   YouTube

Amalgamated Family of Companies
  • Amalgamated Life
  • Amalgamated Agency
  • Amalgamated Employee Benefits Administrators
  • AliGraphics
  • Amalgamated Medical Care Management
Amalgamated Family of Companies

In the past few weeks there have been numerous restrictions placed on businesses throughout the United States. Many states and localities across the country have enacted temporary restrictions on non-essential business operations, requiring millions of workers to stay home. Amalgamated Life Insurance Company, which is based in New York, is considered an essential business and therefore is not subject to these temporary restrictions.

However, in an effort to protect the health and safety of our employees, their families and communities, we have taken a series of company-wide actions, across all Amalgamated Family of Companies locations, to implement work from home and other flexible arrangements where feasible. Despite these changes, we will continue to provide you and your members with the customer service levels you have come to expect from us prior to the coronavirus outbreak.

We are diligently working with our partners and vendors to utilize our remote capabilities and infrastructure. We are also in constant communication with UPS and the USPS to stay informed of any potential changes in service. For the duration of this state of emergency, Amalgamated Life Insurance Company will comply with any required Notice Obligations by emailing and/or mailing notices to all consumers.

If you have any questions or concerns please reach out to your Amalgamated Family of Companies representative or our customer service center at: 914-367-5000. They are well-prepared to answer your questions and can address your specific needs.

Amalgamated Life Amalgamated Employee Benefits Administrators Amalgamated Medical Care Management Amalgamated Agency AliGraphics