2021 Benefits Outlook

After a year unlike any other, what should employers expect in 2021? Here's our outlook based on trends in the data and conversations with consultants across the country.

Cost Uncertainty Continues

The pandemic scrambled normal utilization patterns. Elective procedures were deferred. Preventive care was skipped. Emergency visits declined except for COVID cases. This created an artificial cost suppression in 2020 that will unwind in 2021.

Expect pent-up demand to show up in claims. Employees who delayed care will seek it. Cancer screenings that were missed will be rescheduled. The true cost impact of 2020 won't be fully clear until we see how 2021 utilization plays out.

Telehealth Becomes Permanent

The telehealth expansions of 2020 aren't going away. Employers who added telehealth benefits plan to keep them. Employees who tried virtual visits prefer them for appropriate care needs. Providers have invested in telehealth infrastructure.

The question for 2021 is how telehealth settles into a steady state. What cost-sharing is appropriate? Which services are suitable for virtual delivery? How does telehealth integrate with in-person care?

Mental Health Takes Center Stage

If 2020 taught employers anything, it's that employee mental health matters. Stress, anxiety, isolation, and uncertainty took a toll. Employers are responding with enhanced mental health benefits:

• Expanded EAP coverage
• Reduced barriers to therapy access
• Mental health apps and digital tools
• Manager training on supporting employee wellbeing

Expect mental health to be a major theme in 2021 benefits conversations.

Flexibility is the New Normal

Remote work, flexible schedules, and new approaches to PTO emerged from necessity in 2020. Many will become permanent in 2021. Benefits design will need to accommodate a workforce that doesn't fit the traditional mold.

The data will tell the story. We'll keep you informed.