How COVID-19 is changing employee insurance in 2022

By Keith Signoriello

It’s no secret that the COVID-19 pandemic has altered practically every aspect of business. From remote and hybrid workforces to revenue fluctuations, businesses are still adapting to the “new normal.” Employee insurance is one of the aspects that companies and organizations are revisiting and updating. Employee benefits, especially now, can be the deciding factor for a candidate considering a job offer. Here are a few employee insurance policy changes happening in 2022.

Virtual health care

Virtual health care, or telehealth, grew in popularity during the pandemic and is here to stay. Virtual appointments are convenient and flexible — plus, an employees can save time by not driving themselves or those in their care to far-away appointments. Virtual health care helps to protect employees as well health care professionals. For example, a medical professional can virtually access a patient experiencing COVID-like symptoms, reducing the risk of that patient infecting others during an in-office visit.

Virtual care is often cheaper than in-person care, due to reduced administrative tasks. For employers, this can lower health care costs while providing ample care for employees. Employee health can alter productivity, and it’s important for employees to support their physical, mental and emotional health, especially during a pandemic.

Key employee insurance

An important insurance trend that will continue to grow in 2022 is key employee insurance. This type of insurance policy may be taken out on a CEO, founder or another key employee who the company would have trouble operating without. If the insured person dies, the insurance benefit can help sustain the business until a replacement is found or it can close the business in an equitable way. Unlike personal life insurance, the company pays the key employee insurance premium, and receives the death benefit.

Mental health coverage

Mental health coverage is more important than ever as feelings of isolation, stress and anxiety have increased substantially during the pandemic. In addition to making an effort to boost morale, employers are putting more effort into supporting employee mental health. Neglecting mental health, especially during a pandemic, can result in employee burnout.

Investing in employee mental health can help boost productivity and create a positive company culture. According to Harvard Business Review, “people who said their company has proactively shared how to access mental health resources are 60% more likely to say that their company cares about their well-being.”

Flexible child care benefits

During the pandemic lockdown, many parents and caregivers were forced to choose between child care and employment. As many as 3 million women were pushed out of the U.S. workforce. To cope, many employers made the decision to shift from providing on-site child care facilities to providing flexible child care benefits, including in-home child care and family care resources. Employers are also becoming more open to flexible scheduling, such as an employee with children working from 7 a.m. to 3 p.m. instead of the traditional 9 a.m. to 5 p.m.

Financial impacts

A recent survey by the Society for Human Resource Management concludes that employers can expect to see their health insurance premiums to increase between 4.7% and 5.2% in 2022. Health claims in general are expected to rise, as they have in the past few years. This doesn’t mean that the cost of health insurance will rise for the employee. SHRM explained that employers are expected to cover the rise.

Health insurance is one of the most important benefits an employer can provide and should not be compromised. Employers can work to offset the increased cost by encouraging virtual health care visits and closing physical office spaces that aren’t in use.

Employee retention is a vital piece to any company’s long-term success strategy, and employee insurance coverage is a big part of that. Whether employees are working remotely or from an office, they need to feel supported more than ever. This means businesses and organizations should ensure their coverages and benefits are up to date and as we continue to navigate the “new normal” in 2022.

Keith Signoriello is the owner and principal of C&S Insurance, along with co-owner Ben Cavallo. The agency was founded in 1959 in Mansfield, Mass., by the two men’s fathers. Since joining the agency, Keith has held more than a dozen different positions, with job titles ranging from IT director to commercial insurance manager. He can honestly say he has loved them all. Keith may be contacted at [email protected].