Trending Benefits: A Forecast for 2024
As the end of 2023 draws near, employers are looking ahead for ways to attract and retain talent in an increasingly competitive job market. Health benefits are generally the largest employer cost after salary, so this is an area of ongoing importance to both the hiring effort and cost control.
Certain benefits have become standard and perhaps expected in the workplace. Basic medical insurance, dental and vision, flexible spending accounts (FSAs), and paid time off can be counted among these standard offerings for many employers. As employees continue to work remotely in increasing numbers, telehealth remains a popular benefit. But what else is out there for 2024?
Lifestyle Spending Accounts (LSAs) offer employers a way to fund certain activities and expenses they can design with a lot of freedom. The reimbursement is taxable to employees, since the categories chosen for LSAs are not Section 213(d) expenses, which are reimbursable on a tax free basis by an FSA or HRA.
While states have a myriad of laws when it comes to coverage for fertility treatment, employers are widely looking to enhance coverage in this area. Vendors offer voluntary benefits which can be purchased by employees interested in fertility treatment.
Gender affirming treatment is somewhat regulated by state law, however employers looking to be more generous than required can work with their carriers to cover a broader range of treatment in this area.
Mental health remains a key focus of not just employees, but the DOL as well in 2024. In addition to compliance with mental health parity and comparative analysis for non-quantitative treatment limitations, employers can structure their plans to have more generous access and lower out of pocket costs in general for mental health. Robust employee assistance programs can often bridge the gap for employees looking to access mental health benefits.
Elder care assistance is a growing benefit for 2024, as many employees transition to care takers for their aging family members.
Employers are getting more creative with the assistance of their brokers and benefits consultants. Attracting talent and retaining skilled employees will continue to be at the forefront of employers’ agendas in 2024.