Large U.S. employers focusing on virtual care, mental health services in 2021
The COVID-19 pandemic is prompting employers of all sizes to rethink what and how benefits are offered to their employees.
The COVID-19 pandemic is prompting employers of all sizes to rethink what and how benefits are offered to their employees. Large employers in particular have been well-positioned to lead the way in rethinking health and benefits strategies. This year, in light of the pandemic, expanding virtual care offerings to employees and to beefing up mental health services are topping the priority liest, according to a survey by Business Group on Health, a nonprofit group representing major employers.
The cost of health benefits is expected to rise 5.3% in 2021, a slightly higher rate than the 5% increases employers projected in each of the past five years, the survey said. As in recent years, employers will cover nearly 70% of costs while employees will bear 30%.
Related: Bending the curve: Employer strategies for managing COVID’s downstream health care cost impact
A major trend from the survey is the exponential growth in virtual care, some of which is fueled by the pandemic. Eight in ten respondents said they believe virtual health will play a significant role in delivery of health care in the future, a sharp increase from 64% last year and 52% in 2018. In addition, over half, 52%, of employers surveyed will expand their virtual care options next year, the survey said. Almost all employers will offer telehealth services for minor, acute conditions and 91% will offer mental health services by virtual care.
“Virtual care is here to stay. While employers have been implementing more virtual solutions in recent years, the pandemic caused the pace to accelerate at an astronomical rate,” said Ellen Kelsay, president and chief executive officer of Business Group on Health. ”And virtual care is now garnering growing interest and receptivity from both employees and providers who increasingly see its benefit.”
The survey also showed employers are expanding access to virtual mental health and emotional well-being services in 2021 as a way to address provider shortages, minimize wait times and reduce the stigma of seeking care. More than two-thirds of respondents, 69%, provide access to online mental health support resources such as apps, videos and articles, and that number will jump to 88% in 2021.
“Employers were already prioritizing mental health and emotional well-being before the pandemic hit,” Kelsay said. “Now it’s a significant crisis. In addition to those individuals with pre-existing mental health needs, many more employees and family members are now dealing with anxiety, stress or loneliness. We expect employers will boost their investment in programs that support employees’ mental health and emotional well-being.”
In addition, about half (47%) of employers provide manager training to help recognize mental health and behavioral health issues and direct employees to service, with another 18% planning to do so in 2021. Half of respondents (50%) will conduct anti-stigma campaigns in 2021. More than half, 54%, are lowering or waiving costs for virtual mental health services in 2021.
The report also found more employers are viewing their health care strategy as an integral part of their workforce strategy–45% this year, up from 36% in 2019. And on-site clinics continue to grow–72% have a clinic in place or will by 2023. Primary care services at the worksite are offered by 34% of employers, and another 26% plan to offer this service by 2023.
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