How Employee Benefits Services Will Change in 2024

Chris Freitas • 19 February 2024

As organizations navigate a rapidly changing labor market, the design of employee benefit plans plays a pivotal role in achieving this goal. With healthcare costs on the rise and the workforce becoming increasingly diverse, employers are tasked with striking a delicate balance between cost-effectiveness and the delivery of valuable benefits. In response to these challenges, several key trends are expected to shape the landscape of employee benefits services in the coming year. Let’s discuss what these changes are and how businesses can best adapt to them.

Addressing Healthcare Costs

As healthcare costs continue to soar, employers are compelled to explore innovative strategies to mitigate expenses while maintaining comprehensive benefits for employees. From modifying the financing structure of health plan designs to leveraging timely and proactive processes to stay ahead of changes, successful organizations are adopting multifaceted approaches to navigate the complex healthcare landscape in 2024.

One such proactive approach that businesses are taking involves embracing preventive care services for their employees. Companies are encouraging healthy and active lifestyles for their employees to help them stay healthy more often, which is an excellent method of reducing the number of large medical bills that employees might accrue had they not taken care of their health. This benefits both the organization and the individual equally.

Personalization and Flexibility

In a workforce characterized by diverse needs and preferences, the demand for personalized and flexible benefits is on the rise. Employers will increasingly offer tailored benefits packages in 2024, including flexible spending accounts, customizable retirement plans, and expanded leave options, to accommodate the individual requirements of employees. By empowering employees to select benefits that align with their lifestyles and priorities, organizations can enhance engagement and satisfaction across the workforce.

To keep up with the rising need for customized employee benefits packages, businesses will turn to employee benefits consultants to design these plans. Employee benefits brokers operate as part of your team to provide their expertise and attention to reduce your benefits expenditures so you can focus on running your business. Speak with a KBI Benefits agent today to discover how you could reduce your employee benefits costs by as much as 40%.

Prioritizing Mental Health

Employee mental health emerges as a focal point for employers in 2024, as the ongoing effects of the pandemic and economic uncertainties contribute to heightened stress levels. Employers will invest in specialized mental health treatment, meditation resources, and virtual therapy sessions to support employee well-being and productivity. By fostering a culture of psychological safety and providing resources for coping strategies, organizations can cultivate a supportive environment where employees thrive.

Fostering Belonging

Building upon diversity, equity, and inclusion (DEI) initiatives, employers will emphasize the importance of belonging in the workplace to foster a sense of connection and community among employees. Through initiatives such as open-door policies, social bonding activities, and transparent compensation practices, organizations will strive to create an inclusive environment where every employee feels valued and respected.

This focus on inclusivity is how businesses are responding to an ever-diversifying workforce. People from all walks of life are coming together to support an organization’s success, and businesses that provide initiatives such as these want to assist in bridging the gaps between these different worldviews.

Speak with an Employee Benefits Agent Today

In conclusion, the landscape of employee benefits services in 2024 is characterized by a focus on cost-effective solutions, personalized offerings, and holistic support for employee well-being. By embracing these key trends and partnering with benefits consultants to tailor benefits packages to the evolving needs of the workforce, organizations can enhance their competitiveness and appeal to top talent in a dynamic labor market.

Discover how well your organization is adapting to these changes in employee benefits by scheduling a call with a KBI Benefits agent today. Our expert agents will review the current structure of your employee benefits plan and provide actionable changes to improve your employee benefits ROI and overall employee satisfaction for the rest of 2024 and beyond.

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Should My Business Offer Limited Health Plans?

by Chris Freitas • 18 February 2025

Employers looking to attract and retain top talent are considering different types of medical benefits to meet employee expectations. While major medical insurance remains the gold standard, some businesses are exploring limited health plans as a supplemental option. But are these plans right for your business? Understanding the role of limited health plans and how they fit into an employee benefits package can help you determine if they align with your company’s needs. What Are Limited Health Plans? Limited health plans are medical insurance policies that offer lower benefits and coverage restrictions compared to major medical insurance. These plans come with significantly lower premiums but do not provide the comprehensive coverage mandated under the Affordable Care Act (ACA). Types of limited health plans include: Fixed Indemnity Plans – Pays a set amount per medical service, regardless of the actual cost. Critical Illness Plans – Provides a lump-sum payment for serious diagnoses like heart attacks or strokes. Hospital Cash Plans – Pays a fixed amount per day of hospitalization. Accident-Only Plans – Covers medical costs associated with accidents. Accidental Death and Dismemberment (AD&D) – Pays out if an employee loses a limb, eyesight, or life due to an accident. Short-Term Health Plans – Temporary coverage for those in transition between major medical policies. Unlike traditional health insurance, these plans are designed to supplement coverage rather than replace major medical insurance. The Benefits of Offering Limited Health Plans While limited plans cannot serve as primary health insurance, they can offer advantages when included as part of an employee benefits package. 1. Helps Offset High Deductibles Many employees enroll in high-deductible health plans (HDHPs) due to their lower premiums, but these plans require employees to pay substantial out-of-pocket expenses before coverage kicks in. A limited plan, such as a fixed indemnity or critical illness policy, can help reduce these financial burdens. 2. Affordable Option for Employers and Employees Limited health plans are significantly cheaper than major medical insurance, making them a budget-friendly option for businesses looking to enhance their benefits package without a significant increase in costs. 3. Attracts and Retains Employees According to SHRM’s 2021 Annual Employee Benefit Survey, many employers have expanded their supplemental health insurance options. Offering additional coverage options, even in the form of limited health plans, can make your business more attractive to potential hires. 4. Useful for Employees in Transition Limited plans can be an ideal option for employees: Between jobs or recently laid off Aging out of parental insurance Missed ACA open enrollment Self-employed or working as freelancers Frequently traveling for work and needing out-of-network coverage Should Your Business Offer Limited Health Plans? Whether limited health plans are right for your business depends on several factors: Do your employees have high-deductible health plans? If so, offering a supplemental limited health plan can provide additional financial protection. Are employees looking for more affordable options? Limited plans can be an appealing choice for those who need lower-cost insurance alternatives. Do you want to enhance your benefits package without increasing costs significantly? Limited plans can provide added value to employees without the high expense of major medical insurance. Is employee retention a priority? Competitive benefits can help attract and retain talent in today’s workforce. Final Thoughts While limited health plans are not a replacement for major medical insurance, they can serve as a valuable supplement to existing coverage. If your business wants to provide additional financial protection for employees without significantly increasing costs, these plans might be worth considering. Before making a decision, consult with KBI Benefits to ensure you are offering the most optimized benefits for your workforce. This can mean the difference between a positive and negative ROI on your employee benefits. Contact a benefits expert today to explore the best options for your business.