Open Enrollment 2023: Key Trends

Open enrollment for 2024 plans is underway. Here's what we're seeing as employers finalize their benefits offerings.

Cost Absorption

Despite elevated healthcare cost growth, many employers are holding employee costs steady:

• Premium increases being absorbed by employers
• Deductibles largely unchanged year-over-year
• Contribution percentages holding or increasing slightly

The tight labor market is driving employer reluctance to shift costs to employees.

Mental Health Expansion

Mental health benefits continue to expand:

• EAP visit limits increasing (8-10 becoming common)
• Telehealth mental health now standard
• Digital mental health tools added
• Manager training and cultural initiatives emerging

Employees expect robust mental health support; employers are responding.

GLP-1 Decisions

The GLP-1 question is being addressed:

• Many employers formalizing coverage policies for the first time
• Approaches varying widely (coverage, exclusion, restriction)
• Communication challenges as employees have varying expectations
• Cost implications still unclear for many

This will remain a live issue through 2024.

Voluntary Benefits Growth

Voluntary benefits menus are expanding:

• Critical illness insurance gaining ground
• Hospital indemnity popular with HDHP enrollees
• Pet insurance increasingly common
• Financial wellness programs growing

Employers are enhancing total rewards without adding employer cost.

Plan Design Stability

Core plan designs are relatively stable:

• Deductibles holding steady
• Coinsurance unchanged
• OOP maximums modestly increasing
• HDHP adoption continuing but slowly

Revolutionary plan changes are rare; incremental adjustments are common.

Communication Investment

Employers are investing in enrollment communication:

• Decision support tools
• Total compensation statements
• Multi-channel outreach
• Year-round benefits education

Better communication improves enrollment quality and employee satisfaction.