The Connecticut Business and Industry Association (CBIA) released “Health Trends Shaping Benefits in 2023,” a report detailing the findings of Mercer Marsh Benefits”™ (MMB) global 2023 health trends survey of over 200 insurers in 56 countries. The report concerns insurers and large employers and how both groups navigate post-pandemic challenges.
In addition to the strain on health care that Covid-19 has caused, it also resulted in many instances of deferred care and later diagnoses, the outcome being more expensive treatment options later on. According to CBIA”™s report, 55% of insurers from the MMB survey saw “more later-stage illness diagnoses,” cancer being one of the most frequent causes of claims. In order to keep costs at a sustainable level for employers, MMB analysts “urge employers to consider promoting regular screenings and the importance of early diagnosis” but also cited a new challenge from high inflation rates.
“MMB analysts said the impact of inflation needs to be an important factor in any decision making, along with the affordability of coverage and care for both employers and employees,” the CBIA report said.
Small employers have further challenges. Unlike their large counterparts who are self-funded and can negotiate with big carriers, small employers must pick what they can from small group markets.
“Covid and the insurance regulatory framework in Connecticut continues to make it very difficult for small employers to continue providing affordable health care to their employees,” said CBIA Assistant Counsel Wyatt Bosworth. “At CBIA, because we”™re so thrilled about all the work that large employers are doing to radically transform and bring down the cost of health care, we”™re proposing that small employers be able to do the same thing through association health plans.”
Bosworth added this model would entail small employers collaborating to form “essentially one large employer,” granting them more power including direct negotiation with carriers. Several major regional employers are following that strategy.
The Delamar chain of hotels and restaurants strives to provide employees with affordable health care. The company”™s Greenwich and Southport hotels and adjoining restaurants respectively have more than 30 and 50 employees, with more than half on Delamar”™s health plan. The company pays 75% of the costs, and early screenings and annual physical checkups are considered extremely important by Delmar and are covered in full, and in recent years there have been some changes as a result of the pandemic.
“When renewing the benefits plan post-Covid, the company did opt to offer more coverage in regard to telemedicine, awarding more sick days, providing a safe harbor 401k contribution to assist employees in saving for retirement, provided staff with paid sick leave as well as continuous PPE to keep employees in a healthy, safe work environment,” said Human Resources Director Annmarie Pepiciello.
The Maritime Aquarium at Norwalk, which employs about 65 full-time employees, has also managed to provide health care to most of its full-time staff. Regular screenings are promoted, and those covered are encouraged to take advantage of their plans.
“Within the employer-employee ratio, we have, I think as long as our policies have been around, covered 80% of the cost,” said President and CEO Jason Patlis.
Inflation presents a challenge for the aquarium, though it aims to keep employee costs similar to previous years. In 2021, “with the 5% increase in our annual cost, the Maritime Aquarium covered the entire 5% for the premiums,” Patlis said. “We”™re now paying effectively greater than 80% share of the cost and making it a little easier for staff to deal with inflation that they”™re experiencing elsewhere.”
