COVID-19 and Employee Benefits: What Employers Need to Know

The COVID-19 pandemic has forced rapid changes in employee benefits. We're tracking what employers are doing in real-time. This post summarizes what we're seeing.

Immediate Response: Coverage Changes

Employers have moved quickly to ensure COVID-related care is covered without barriers:

Testing coverage: Nearly universal coverage for COVID testing with waived cost-sharing. This came through carrier bulletins and regulatory guidance, but employers have embraced it.

Treatment coverage: Waived or reduced cost-sharing for COVID treatment. Some employers have specifically addressed hospitalization costs.

Telehealth expansion: Rapid addition of telehealth benefits for employers who didn't have them. Waived telehealth copays to encourage virtual care and reduce infection risk.

Plan Administration Flexibility

Beyond coverage, employers are providing administrative flexibility:

FSA/HSA changes: Extended deadlines, expanded carryover provisions, mid-year election changes permitted.

Special enrollment: Allowing employees to add coverage outside normal windows.

Premium assistance: Some employers are maintaining coverage for furloughed workers or subsidizing COBRA.

Mental Health Focus

The pandemic's mental health impact has pushed employers to act:

EAP promotion: Increased communication about existing EAP resources.

Additional support: Adding mental health apps, expanding telehealth therapy coverage.

Manager resources: Training for managers on supporting struggling employees.

What's Not Changing

Despite the upheaval, some elements remain stable:

• Core plan designs (deductibles, OOP maximums) are largely unchanged
• Premium contribution structures are holding
• Renewal timelines are proceeding normally for most employers

Employers are making targeted changes to address immediate needs without overhauling their entire benefits structure.

Looking Ahead

The full impact of COVID-19 on employee benefits won't be clear for months or years. We're watching:

• How utilization patterns shift as care resumes
• Which temporary changes become permanent
• How renewals are affected by pandemic claim patterns
• What new expectations employees have developed

We'll continue tracking the data and sharing what we learn.