5 fertility benefit trends for 2022
An expectation of benefit parity for all employees is having a meaningful impact on this area of employee benefits.
As open enrollment season nears and the calendar turns to 2022, the latest trends in fertility and family building benefits will come into sharper focus. An expectation of benefit parity for all employees is having a meaningful impact on future benefit design, while a new state law will have immediate implications for what certain employers must offer with respect to fertility treatments.
Related: Aetna accused of denying coverage of fertility treatments for LGBTQ+ policyholders
Here are five trends to keep an eye on in the new year:
1. LGBTQ+ inclusivity
Designing a fertility benefit that meets the needs of same-sex, singles and opposite-sex couples equitably, while also restricting any couple from claiming infertility at any time, remains a fundamental challenge. Supporting same-sex couples unable to have children without medical assistance while maintaining cost managing requirements for opposite-sex couples to meet a definition of being infertile is not simple. Removing the requirement to have a diagnosis and meet the definition of being infertile is an important and effective means to control costs of a program that may otherwise be canceled by an employer if costs make unsustainable.
Creative approaches have been utilized in recent years to address these needs. Ideally in 2022, that question is resolved by employers, providers and fertility managers.
2. Increased policy limits
The journey to parenthood is increasingly costly and may take different paths with price tags that may be out of reach for many. Based on growing demand by employees for fertility, adoption and surrogacy support an important and perhaps overdue trend is increasing benefit limits to assist employees appropriately and equitably.
Adoption and surrogacy services can range from $50k to $150k and employers are responding with higher levels of financial support and employee guidance. The rising cost of prescription drugs are making fertility treatments more expensive overall, which is also driving policy limits higher in 2022. As more employers offer these programs with same-sex couples and singles in mind, expectations are that family building support level will increase across the board.
3. Drug trends
As the cost of fertility medication rises, it only furthers the importance of offering a managed fertility benefit with clinical oversight. Employees who receive generous fertility benefits but no clinical guidance when it comes to purchasing prescription drugs can quickly accumulate costly, unnecessarily dispensed drugs are at the employer’s expense.
Today, the cost of drugs alone accounts for almost 40% of a total IVF cycle expense. If the trend continues, that percentage will increase again next year as the cost of medication outpaces other medical costs.
4. Broader support for families
So a couple used infertility treatments to successfully have a child. What else can an employer do to help them at home?
The idea of supporting employees with services that allow them to balance work, children and possibly caring for their own parents and extended family, is growing in popularity. That includes mental health and behavioral support for the employee and their family. There are also ways employers can support couples who don’t have to go through infertility treatments to better educate and plan for becoming new parents before they return to work.
For families who elect to continue educating their children at home, rather than return them to school for the 2021-22 year, such “family services” can be especially helpful.
5. New laws
State-mandated fertility benefits have expanded in recent years. In 2019, the state of New York began requiring employers to cover their employees’ in vitro fertilization. In 2022, a similar expansion will take place in Colorado.
The expansion and support of state mandates in various states is likely to accelerate. States might also step in with legislation to include family benefits for non-heterosexual couples. At their best, these laws strike a balance between benefitting employees and protecting employers’ bottom line.
Peter Nieves serves as the Chief Commercial Officer for WINFertility. He is responsible for the profitable growth, product strategy and expansion at WIN. Peter has over 25 years of experience in the benefits consulting and P&C industry.
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