Thinking about the future of benefits
Here are six things to think about that will affect our industry in 2020 and beyond.
January is the best time to think about the future, and we sure have a whole lot of it to look forward to in the benefits business! Here is a list of six things to think about that will affect our industry in 2020 – and beyond:
1. Politics (no surprise)
Health care and nearly everything related to health benefits has been at the forefront of the political debate for over 10 years—and this is likely to continue. Without speculating about potential outcomes, let’s say it’s incumbent on all of us to continue to monitor what politicians are doing with relation to health-related benefits and to find the places where opportunities will inevitably lie. It’s virtually a full-time job, but it’s one that will result in great opportunity for those who create the right package in response.
2. Everybody wants to play health care aggregator
And that includes insurers and big tech companies. There’s a big reason for this. Every day, politicians and headlines are reminding us about the burgeoning expenses related to health care. So, we see health insurers merging with pharmacies, grocery stores becoming clinics, and big tech providers forming alliances with hospitals to aggregate and analyze data. None of this is an accident. The Apple Watch has become a health care instrument, and there’s no question that Apple wants that to grow in the future. Where will this lead? We need to follow trends and help our customers by taking advantage of opportunities.
3. Government regulators
While it seems this may be a duplication of the politics that headed this list, politics covers those who want to be in office or control legislation, whereas this represents those who continue to promulgate a myriad of regulations related to benefits. One of the most prominent examples is state paid family leave and paid medical leave laws. These have a significant effect on income protection insurance and also represent an area where employers will continue to need significant compliance-related assistance.
4. Privacy (and lack thereof)
In my November column, I discussed identity theft. That’s just one of the many issues related to privacy that touch our business. There is so much personal data captured now that your grocery store may actually know more about your health than your doctor does. How? You tell your doctor that you’re eating low-fat meats, yogurt and broccoli, but your grocery store knows that you’re eating lots of cheese twists and bacon. The fact is, one of the reasons big tech is getting into health care is they can exploit this kind of data much more effectively than your primary care physician. They aren’t operating under the Hippocratic oath; they’re finding ways to maximize your economic value to them.
5. The economy
Many pundits continuously predict recession, while the economy continues to percolate. Who knows what will happen? I certainly don’t, but it’s pretty certain that an economic downturn would adversely affect benefits.
6. Businesses and the nature of employment are evolving
Certain employment sectors are changing radically. Examples include the mashup of home delivery and restaurant food, and continuing changes in the retail business. The ongoing development of robotics and AI is exacerbating the change in employment; meanwhile, there are a growing number of workers in the gig economy, contracted non-employee workers and self-employed entrepreneurs. A high percentage of these workers are disenfranchised from traditional employee benefits. There’s a huge opportunity for those who provide effective benefit options to these workers.
This is just a sampling of the trends we need to track in the coming year. No doubt, some of the occurrences will be counter to what seem like our best interests, while others will appear favorable. We need to think like sailors: The wind can blow behind you or against you. By properly positioning your sails, you will move forward in either situation. So, my advice is to track these trends, think about them, and build on your business strengths to respond positively. Your employer and employee customers will thank you through more and continuing business!
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