May 13, 2020
The International Foundation of Employee Benefit Plans (IFEBP), the premier educational organization devoted to supplying employers and plan sponsors comprehensive support on managing benefit plans, recently issued a valuable report. The report contains results from a recent survey of employers about their health and benefit plan changes related to the pandemic. For your convenience, the major headlines are below. You can also view the full report here.
HEALTH CARE BENEFIT CHANGES
- Prescription Drug Plans Are Changing to Reduce Barriers – As a result of the pandemic, 35% of employers have extended the time allowed under prior authorization periods for prescription drugs, 29% have increased quantity limits and 13% have waived prior authorization requirements.
- Mental Health Benefits Are Increasing – Recognizing that employee mental health during this time is a serious concern, 12% of employers have added tele-psychiatry, which allows employees to access mental health services virtually. Additionally, 9% of employers have reduced or eliminated cost sharing for mental health benefits, and 6% have relaxed or eliminated eligibility requirements.
- Nearly All Employers Are Offering Telehealth Services – To help workers receive medical care while reducing their risk of exposure, nearly all employers are offering telehealth services. Prior to the pandemic, 88% of employers had telehealth services in place. Since then, an additional 10% of employers have implemented or are considering implementing telehealth. To encourage the use of these services, nearly half of employers (49%) have reduced or eliminated telehealth cost sharing.
RETIREMENT CHANGES
- Some Employers Have Reduced or Suspended Matching Contributions – For organizations that provide matching contributions to their employees’ retirement plan, 2% have reduced the matching contribution and 8% have suspended it. An additional 18% report that they have not yet made changes but are considering it for the future, and 9% say it is too early to tell what changes they will make.
STAFFING CHANGES
- A Significant Number of Employers Have Furloughed or Laid Off Workers
- The report found that 31% of employers have temporarily furloughed workers, 29% have reduced worker hours, and 21% have laid off workers or reduced their workforce.
- Looking ahead, many employers are considering future changes—13% are considering furloughs, 14% reduced worker hours and 18% layoffs.
- Just under half of employers (44%) have implemented a temporary hiring freeze for their organization.
HEALTH CARE BENEFITS FOR FURLOUGHED/LAID-OFF WORKERS VARY BY EMPLOYER
- 7% are providing employee health care coverage through COBRA, with the worker paying the full cost.
- 38% are continuing health care coverage for the entire period, with the cost shared as usual between worker and employer.
- 23% are continuing health care coverage for the entire period, with the employer paying the full cost.
- 25% are continuing health care coverage for a limited time, with the cost shared as usual between worker and employer.
- 7% are continuing health care coverage for a limited time, with the employer paying the full cost.
- For employers that have laid off workers, the majority (61%) are offering health care coverage to laid-off employees through COBRA, with workers paying the full cost.
Click here for a printable download.
NOTE: THE RESOURCES PROVIDED ON THIS PAGE SHOULD NOT BE INTERPRETED AS LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS, PLEASE CONSULT YOUR LEGAL COUNSEL
