Health Insurance Market Changing for Employers and Employees

According to a recent study by Mike Simonds of UnumProvident, the rapidly changing employee benefits market is creating a number of challenges for employers. Below are some of the key points mentioned in the article.

• A one-size-fits-all benefits program is no longer viable, given today’s diverse workforce.
• In 2005, health expenditures represented 16% of the Gross Domestic Product, and health care spending is expected to reach $4 trillion and 20% of the GDP by 2015
• Increased competition to attract the best employees requires employers to offer a competitive benefits package with a wide choice of coverage
• Supplemental or ancillary benefits let employers offer a robust benefits program while keeping costs under control. Offering supplemental benefis on top of the “foundation” benefits shows that employers are thinking more broadly about employee needs.
• Supplemental benefits can help employers compete in a tight labor market by providing more choices for employees and helping to fill any gaps in coverage
• Women outpace men as purchasers of supplemental products, and employees age 30 to 49 are the most common purchasers of these benefits.