The COVID-19 pandemic continues to bring forth a variety of questions for businesses. Employers can take a number of preventive steps to help keep employees safe, but they should also prepare to respond to various situations that can occur in the workplace.
This article provides COVID-19 general business FAQs from the Centers for Disease Control and Prevention (CDC). These FAQs build on the CDC’s interim guidance for businesses and employers and its guidance for critical infrastructure workers. The CDC’s guidance is intended to supplement—not replace—federal, state and local mandates regarding the COVID-19 pandemic.
What should I do if an employee comes to work with COVID-19 symptoms?
Employees who have COVID-19 symptoms when they arrive at work or become sick during the day should immediately be separated from other employees, customers and visitors, and be sent home. Employees who develop symptoms outside of work should notify their supervisors and stay home.
Sick employees should follow CDC-recommended steps to help prevent the spread of COVID-19. Employees should not return to work until they have met the criteria to discontinue home isolation and have consulted with a health care provider. Employers should not require sick employees to provide a COVID-19 test result or health care provider’s note to validate their illness, qualify for sick leave or return to work. Health care provider offices and medical facilities may be extremely busy and not able to provide such documentation in a timely manner.
What should I do if an employee is suspected or confirmed to have COVID-19?
In most cases, an employer does not need to shut down their facility, but should close off any areas used for prolonged periods of time by the sick person, and:
Wait 24 hours before cleaning and disinfecting to minimize potential for other employees being exposed to respiratory droplets. If waiting 24 hours is not feasible, wait as long as possible.
Be sure to follow the instructions on the product labels to ensure safe and effective use of the product.
Individuals may need to wear additional personal protective equipment (PPE) depending on the setting and disinfectant product they are using.
If an employee is confirmed to have COVID-19, employers should inform fellow employees of their possible exposure to COVID-19 in the workplace, but maintain confidentiality as required by the Americans with Disabilities Act (ADA).
Employees who test positive for COVID-19 (using a viral test, not an antibody test) should be excluded from work and remain in home isolation if they do not need to be hospitalized. Employers should provide education to employees on what to do if they are sick.
Employers may need to work with local health department officials to determine which employees may have had close contact with the employee with COVID-19 and who may need to take additional precautions, including exclusion from work and remaining at home.
Most workplaces should follow public health recommendations for community-related exposure and instruct potentially exposed employees to stay home for 14 days, telework if possible and self-monitor for symptoms.
Critical infrastructure workplaces should follow CDC guidance for dealing with critical infrastructure employees who may have had exposure to a person with a suspected or confirmed COVID-19 infection.
Sick employees should follow CDC-recommended steps. Employees should not return to work until they have met the criteria to discontinue home isolation and have consulted with a health care provider. Antibody test results should not be used to make decisions about returning employees to the workplace.
Employers should not require a sick employee to provide a negative COVID-19 test result or health care provider’s note to return to work.
What should I do if I find out several days later, after an employee worked, that they were diagnosed with COVID-19?
If it has been less than seven days since the sick employee used the facility, clean and disinfect all areas used by the sick employee following the CDC cleaning and disinfection recommendations. If it has been seven days or more since the sick employee used the facility, additional cleaning and disinfection is not necessary. Continue routinely cleaning and disinfecting all high-touch surfaces in the facility.
Other employees may have been exposed to COVID-19 if they were in “close contact” (within approximately 6 feet) of the sick employee for a prolonged period of time.
If an employee is confirmed to have COVID-19, employers should inform fellow employees of their possible exposure to COVID-19 in the workplace, but maintain confidentiality as required by the ADA.
Those who have symptoms should self-isolate and follow CDC-recommended steps. In most workplaces, those potentially exposed—but with no symptoms—should remain at home or in a comparable setting and practice social distancing for 14 days.
Critical infrastructure employees should follow this guidance if they potentially had exposure to a person with a suspected or confirmed COVID-19 infection. A critical infrastructure employee who is symptom-free and returns to work should wear a cloth face covering at all times while in the workplace for 14 days after their last exposure.
Employees not considered exposed should self-monitor for symptoms. If they develop symptoms, they should notify their supervisor and stay home.
If an employee has been exposed but is not showing symptoms, should they be allowed to work?
Employees may have been exposed if they were in “close contact” with someone who is infected, which is defined as being within about 6 feet from a person with COVID-19 for a prolonged period of time.
Potentially exposed employees who have symptoms of COVID-19 should self-isolate and follow CDC-recommended steps.
Potentially exposed employees who do not have symptoms should remain at home or in a comparable setting and practice social distancing for 14 days.
All other employees should self-monitor for symptoms and wear cloth face coverings when in public. If they develop symptoms, they should notify their supervisors and stay home.
How can I protect employees who may be at higher risk for severe illness?
Have conversations with employees if they express concerns about COVID-19 infection. Some people may be at higher risk of severe illness. This includes older adults (65 years and older) and people of any age with serious underlying medical conditions. By using strategies that help prevent the spread of COVID-19 in the workplace, employers can help protect all employees, including those at higher risk. These strategies include:
Implementing telework and other social distancing practices
Actively encouraging employees to stay home when sick
Providing sick leave
Promoting hand-washing
Providing supplies and appropriate PPE for cleaning and disinfecting workspaces
Requiring all employees to wear cloth face coverings
In workplaces where it is not possible to eliminate face-to-face contact (such as retail), consider assigning employees who are at higher risk of severe illness tasks that allow them to maintain a 6-foot distance from others, if feasible.
Employers should not require employees to provide a note from their health care provider when they are sick. Instead, allow them to inform their supervisors or employee health services when they have conditions that put them at higher risk for diseases.
When is a cloth face covering not appropriate while at work, and what can employees wear instead?
Cloth face coverings can prevent the wearer from spreading COVID-19 to others, but they may not always be appropriate. Employees should consider using an alternative under certain conditions at work, including:
If they have trouble breathing
If they are unable to remove it without help
If it interferes with vision, glasses or eye protection
If straps, strings or other parts of the covering could get caught in equipment
If other work hazards associated with wearing the covering are identified and cannot be addressed without removal of the face covering
Cloth face coverings should not be worn if their use creates a new risk (e.g., interferes with driving or vision, or contributes to heat-related illness) that exceeds their benefit of slowing the spread of COVID-19.
The Occupational Safety and Health Administration (OSHA) suggests that an employee wear a face shield if a cloth face covering is recommended but the employee cannot tolerate wearing a cloth face covering. If used, a face shield should cover the entire front and sides of the face and extend below the chin.
Are cloth face coverings the same as PPE?
No, cloth face coverings are not PPE. These face coverings are not respirators and are not appropriate substitutes for them in workplaces where respirators are recommended or required for respiratory protection.
How often should employees wash their hands while at work?
The CDC recommends employees protect themselves from respiratory illness with everyday preventive actions, including good hand hygiene. Employees should wash hands often with soap and water for at least 20 seconds, or use a hand sanitizer that contains at least 60% alcohol if soap and water are not readily available, especially during key times when persons are likely to be infected by or spread germs, including:
After blowing one’s nose, coughing or sneezing
Before, during and after preparing food
After using the toilet
After touching garbage
Before and after the work shift
Before and after work breaks
After touching objects that have been handled by customers or other employees
What is social distancing and how can my workplace do that?
Social distancing means avoiding large gatherings and maintaining distance (at least 6 feet) from others when possible. Strategies that businesses could use include:
Allowing flexible worksites (such as telework)
Allowing flexible work hours (such as staggered shifts)
Increasing physical space between employees at the worksite.
Increasing physical space between employees and customers (such as a drive-thru and partitions)
Implementing flexible meeting and travel options (such as postponing nonessential meetings or events)
Delivering services remotely (e.g., phone, video or web)
Delivering products through curbside pickup or delivery
Should employers screen employees for COVID-19 symptoms, such as with temperature checks?
Screening employees is an optional strategy that employers may use. Performing screening or health checks will not be completely effective because asymptomatic individuals or individuals with mild, nonspecific symptoms may not realize they are infected and may pass through screening. Screening and health checks are not a replacement for other protective measures, such as social distancing.
Consider encouraging individuals planning to enter the workplace to self-screen prior to coming on-site and not to attempt to enter the workplace if any of the following are present:
Are under evaluation for COVID-19 (for example, waiting for the results of a viral test to confirm infection)
Have been diagnosed with COVID-19 and not yet cleared to discontinue isolation
The ADA permits employers to make disability-related inquiries and conduct medical exams if job-related and consistent with business necessity.
Generally, measuring an employee’s body temperature is a medical examination. Because the CDC and state and local health authorities have acknowledged community spreading of COVID-19 and issued precautions, employers may measure employees’ body temperatures.
Inquiries and reliable medical exams meet this standard if they are necessary to exclude employees with a medical condition that would pose a direct threat to health or safety. Direct threat is to be determined based on the best available objective medical evidence. The guidance from the CDC or other public health authorities is such evidence. Therefore, employers will be acting consistently with the ADA as long as any screening implemented is consistent with advice from the CDC and public health authorities for that type of workplace at that time.
The ADA requires that all medical information about a particular employee be stored separately from the employee’s personnel file, thus limiting access to this confidential information. An employer may store all medical information related to COVID-19 in existing medical files. This includes an employee’s statement that they have the disease or suspect they have the disease, or the employer’s notes or other documentation from questioning an employee about symptoms. For example, this may include continuing to take temperatures of everyone entering the workplace and asking questions about symptoms (or requiring self-reporting).
What testing does the CDC recommend for testing employees in a workplace?
The CDC does NOT recommend that employers use antibody tests to determine which employees can work. Antibody tests check a blood sample for past infection with SARS-CoV-2, the virus that causes COVID-19. The CDC does not yet know if people who recover from COVID-19 can get infected again. Viral tests check a respiratory sample (such as swabs of the inside of the nose) for current infection with SARS-CoV-2.
The CDC has published strategies for consideration of incorporating viral testing for SARS-CoV-2 into a workplace COVID-19 preparedness, response and control plan. Different states and jurisdictions may have their own guidance and priorities for viral testing in workplaces. Testing in the workplace could be arranged through an organization’s occupational health provider or in consultation with their local or state health department.
What measures should be taken to protect an employee who must travel for work?
Although travel should be minimized as much as possible during the COVID-19 pandemic, many jobs require travel, and it may not be possible to conduct certain job duties using virtual tools. The following measures may be taken to protect employees while traveling:
Schedule travel to limit the distance travelled and need for overnight lodging.
If multiday travel is necessary, coordinate with travel preparers to identify hotels that disinfect rooms between stays and regularly disinfect surfaces in common areas.
Provide employees with forms of transportation that minimize close contact with others, such as fleet vehicles or rental vehicles.
If public transportation is used, ask employees to follow the CDC guidance on how to protect themselves when using transportation.
If flying is necessary, select seats on flights that provide the greatest distance between other travelers and choose direct flights, if possible.
Disinfect surfaces of rental cars or fleet vehicles (e.g., steering wheel, shifter and arm rests) between each use, using products that meet the EPA’s criteria for use against SARS-CoV-2.
Make sure employees are provided with necessary supplies and understand protective measures they can take while traveling. These measures include:
Maintaining a distance of at least 6 feet from other people (social distancing) as much as possible during travel
Wearing cloth face coverings when a distance of 6 feet is difficult to maintain, such as in airports, airplanes, and public transportation
Using disinfecting wipes to clean commonly touched surfaces inside vehicles and airplanes
Considering ordering food for pickup or delivery rather than eating out at restaurants
Hand-washing or using hand sanitizer regularly
Ensuring that employees know that if they get sick they should stay home (not travel) or return home (if traveling), provided it is feasible for them to travel without endangering themselves or others
Making sure employees know who to contact if they are sick
For more information, see CDC guidance for travel in the United States.
How do I know if my business is considered critical?
The Department of Homeland Security (DHS) has developed a list of essential critical infrastructure employees to help state and local officials as they work to protect their communities, while ensuring continuity of functions critical to public health and safety as well as economic and national security. State and local officials make the final determinations for their jurisdictions about critical infrastructure employees.
I don’t provide sick leave to my employees. What should I do?
Employers that do not currently offer sick leave to some or all of their employees may want to draft nonpunitive “emergency sick leave” policies. Ensure that sick leave policies are flexible and consistent with public health guidance and that employees are aware of and understand these policies.
In addition to cleaning and disinfecting, what can I do to decrease the spread of disease in my workplace?
Employers can also:
Provide tissues and no-touch disposal receptacles.
Provide soap and water in the workplace. If soap and water are not readily available, use alcohol-based hand sanitizer that contains at least 60% alcohol. If hands are visibly dirty, soap and water should be chosen over hand sanitizer.
Place hand sanitizer in multiple locations to encourage good hand-hygiene practices.
Place posters that encourage staying home when sick, the importance of hand hygiene and coughing and sneezing etiquette at the entrance to the workplace and in other workplace areas where employees are likely to see them.
Discourage handshaking.
Summary
These FAQs provide guidance from the CDC. However, employers should be aware that CDC guidance changes over time, and should visit the CDC’s website for current guidance. Employers should continue to monitor updates from CDC and follow direction from local health officials.
The $1.9 billion relief bill, known as the American Rescue Plan, has passed Congress and will head to President Joe Biden for a signature. Highlights of the bill include extended unemployment benefits, direct checks to individuals and more.
While some of the bill was changed during its time in the Senate, it’s largely similar to the initial version passed by the House. However, some key provisions, such as a higher minimum wage, were scrapped amid efforts to pass the bill swiftly.
This article outlines the most relevant provisions included in the bill.
SMALL BUSINESS ASSISTANCE The bill invests billions toward small business assistance. Here is the current funding breakdown: -Emergency Injury Disaster Loan program: $15 billion -New grant program for bars and restaurants, specifically: $28 billion -Paycheck Protection Program: $7.25 billion
DIRECT PAYMENTS Just like the two other COVID-19 relief bills passed during the pandemic, this version also features direct payments to Americans. This time around, eligible recipients can expect $1,400 per person ($2,800 for couples), including adult dependents—a family of four could receive up to $5,600.
However, payment parameters are stricter this time around than with the previous direct payment. The full amount will go to individuals earning under $75,000 (or $150,000 for couples), with payments cut off entirely for individuals earning over $80,000 (or $160,000 for couples). Individuals earning an amount between those figures will receive a reduced sum.
UNEMPLOYMENT AID The bill extends two previously established pandemic unemployment assistance efforts: the Pandemic Unemployment Assistance Program and the Pandemic Emergency Unemployment Compensation program. Unemployed gig workers, freelancers, contractors and others who previously qualified for aid will continue to be eligible under these programs. The financial assistance provided by these two programs is currently set to expire in mid-March, which pressured legislators to act quickly. The bill also provides for enhanced unemployment assistance payments of $300 per week. Under the bill, these programs and their financial aid are extended through Sept. 6.
HOUSING ASSISTANCE The bill sets aside billions in financial aid to homeowners and renters. Here is the funding breakdown: -Aid for emergency rental assistance: $22 billion -Aid for mortgages, utilities and property taxes: $10 billion -Aid to states and localities to help individuals at risk of becoming homeless: $5 billion
EMERGENCY PAID LEAVE The Families First Coronavirus Response Act (FFCRA), signed into law on March 18, 2020, required certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. That requirement expired Dec. 31, 2020.
The American Rescue Plan maintains the status quo, in that it does not require employers to offer leave under the FFCRA framework. However, the bill does provide tax credits for employers that voluntarily provide leave under the FFCRA framework through the end of September 2021.
AID TO SCHOOLS AND CHILD CARE A significant portion of the relief bill involves aid to states, including schools and child care facilities: -Aid for getting K-12 schools ready for in-person learning: $125 billion -Money may be used for purchasing protective equipment, improving ventilation systems and hiring support staff. However, 20% of the money schools receive must be used to address pandemic learning loss—for example, extending learning time into the summer. -Aid for colleges: $40 billion Institutions will be required to spend at least 50% of their allocated funds on emergency financial aid grants to students. -Child care provider assistance: $39 billion -Funds may be used for payroll, rent, protective equipment and other expenses.
TAX CREDITS The relief bill provides an overhaul of the child tax credit for the 2021 tax year. The bill increases the amount of the credit to $3,000 for each child under the age of 18 and $3,600 for children under the age of 6. The credit will also become fully refundable, meaning low-income individuals would receive the benefit.
The bill also expands the earned income tax credit for individuals without children. The maximum credit will be nearly tripled, and eligibility will be expanded as well.
HEALTH INSURANCE The bill subsidizes private health insurance premiums for unemployed workers through the Consolidated Omnibus Budget Reconciliation Act (COBRA). The provision allows individuals eligible for COBRA insurance coverage to maintain their employer-sponsored coverage after losing employment without having to pay any portion of the premiums through the end of September 2021.
Additionally, the bill invests nearly $35 billion in premium subsidy increases for those who buy coverage on the ACA Marketplace. The bill increases the subsidies provided to currently eligible individuals, and removes the 400% federal poverty level cap (equal to approximately $51,000 for an individual) on subsidy eligibility.
AID TO STATES, LOCAL GOVERNMENTS, TRIBES AND TERRITORIES The bill provides billions in financial assistance to states, local governments, tribes and territories. Here is the current funding breakdown: -Aid to state and local governments: $325.5 billion -Aid to tribes and territories: $24.5 billion -Creation of the Coronavirus Capital Projects Fund, to carry out capital projects directly enabling work, education and health monitoring: $10 billion
WHAT’S NOT IN THE BILL A minimum wage hike of $15 per hour—one of the most discussed provisions from the initial bill—has been removed from the final version due to strict rules governing budget bills in the Senate. Some Democrats have suggested this provision may be considered as a standalone bill, but any movement on that front remains to be seen.
Additionally, the bill does not include an extension of the eviction moratorium, which is set to expire on March 31, or an expansion of mandated paid sick and family and medical leave. While neither were included in the original House bill, these were popular provisions contained within one of the previous bills.
SUMMARY While there are many complex provisions in this nearly $2 trillion relief bill, Launchways is here to help employers make sense of everything. Reach out with questions about how this new bill may affect your organization.
Businesses were already expected to acclimate to rapidly changing regulations and workforce demands, and the COVID pandemic has heightened those expectations even more. This has led many business owners to wonder what additional changes are on the horizon. The recent change in presidential administration has also led many employers to consider how prepared their organization is for impending legislation.
In this post, we’ll cover some anticipated changes employers may encounter over the next two years in the worlds of labor and employment. The specific changes that we’ll discuss include:
Expanded Occupational Health and Safety Administration (OSHA) Enforcement
Return to the Obama-era FLSA White-Collar Exemption
Expanded OSHA Enforcement
Under Trump’s presidency, the number of OSHA audits, inspections, penalties, and overall enforcement personnel decreased from year to year. As is the case for many Trump-era regulations, this trend is likely to reverse under President Biden. You can expect Biden to direct OSHA to hire more enforcement personnel, and to conduct more inspections. With more inspections, you can expect OSHA to be handing out more penalties as well. These increased inspections will be related to COVID as well as other occupational safety concerns.
Federal Minimum Wage Increases
President Biden has long been a proponent of a higher federal minimum wage – specifically $15/hr. This increase, which would more than double the current $7.25 federal minimum wage, will face an uphill battle of legislation. However, incremental increases over the next several years may be agreed on through a compromise across party lines, so employers should start preparing for this very real possibility.
Another minimum wage order that Biden has already issued is to direct his administration to start working on a $15 minimum wage for all employees of federal contractors. His plan is to implement this executive order within the first 100 days of his presidency. Examples of such contractors include cleaning and food service employees.
Towards the end of the Obama Administration, the Department of Labor revised the Labor Management Reporting Disclosure Act (LMRDA) “persuader” disclosure rules. Although these revisions never took effect, their intention was to broaden the scope of companies and individuals that had to file LMRDA disclosure paperwork. This would have removed the “advice” exception, which held that consultants or attorneys who only provided advice to employers (not directly persuading them) were not required to file disclosures under the LMRDA. Biden is very likely to try to make this revision again and reinstate the revised persuader rules.
Expanded EEOC Reporting Requirements
Your organization should begin preparing to track and report on wage and salary data based on race and gender. The EEOC under President Biden will most likely implement new reporting requirements to improve pay equality in the United States.
Temporary OSHA COVID Rules
One of President Biden’s first executive orders, which he signed on January 21, 2021, was to direct OSHA to provide new guidance to employers to help them improve workplace safety during the ongoing COVID-19 Pandemic. OSHA responded quickly to this order and issued new guidance on January 29, 2021.
This guidance can be summarized into the following themes:
Hazard assessments
Measures to limit the spread of COVID-19
Isolation or separation measures of infected workers from the workplace (physical distancing, installing barriers, or staying home)
Use of personal protective equipment
Improvements in ventilation, hygiene, and sanitation measures
Industry specific guidelines.
Paid Sick Leave Changes
Biden has long been an advocate of 12 weeks of annual paid family and medical leave. However, experts are skeptical about the feasibility of such legislation. Last year, Congress approved two weeks of paid emergency FMLA leave. This new paid leave might push some Republican senators to warm to the idea of providing further paid leave.
Removal of Key Trump Regulations
Since day one of his administration, President Biden has been rolling back or removing some key Trump regulations. Examples include:
Withdrawing Trump-era Department of Labor opinion letters on the topics of tip pooling and employee classification.
Freezing the independent contractor rule. Under this rule, it was easy for employers to classify “gig economy” workers as independent contractors.
The Department of Labor under President Biden will most likely roll back Trump’s tip pooling regulations and revert back to the former rules. The former rules do not allow “back-of-the-house” workers, like restaurant kitchen staff for example, to participate in tip pools.
Return to the Obama-era FLSA White-Collar Exemption
Under President Obama’s Fair Labor Standards Act regulations (FLSA), the salary below which workers are entitled to overtime was raised to $47,476. Trump lowered this amount back down to $35,308. Employers can expect that during the Biden Administration, this amount will increase back up to Obama levels, or potentially even higher.
Key Takeaways
Employers can expect many changes over the next two years in the worlds of employment and labor. Most of these changes are a result of the recent change in presidential administration. President Biden will be reversing many of the regulations and executive orders that President Trump put in place. Many of these changes will bring back Obama-era regulations, although there will be some differences.
The most important changes that employers can expect fit into these categories:
Expanded Occupational Health and Safety Administration (OSHA) Enforcement
The Paycheck Protection Program (PPP) is likely the most discussed of all the federal programs issued to address the impact the COVID-19 pandemic has had on our economy. Millions of employees across the country were left without income after nearly every small business in America was forced to temporarily close its doors. This set in motion the most difficult economic downturn our nation has seen since the Great Depression.
To reduce the worst of the effects of mass closures, the federal government issued the PPP to give the economy a shot in the arm by essentially substituting the lost revenue with government funding. As the name suggests, the purpose of this money was primarily to cover the non-existent wages of the employees affected.
While this helped millions of workers who would have otherwise been left without income, the businesses that utilized this program must now account for it in their tax filings. The PPP was implemented incredibly quickly and underwent several changes in scope and terms. It comes as no surprise that filing the related taxes has left many employers scratching their heads trying to figure out exactly how they are supposed to file. In this article, we discuss some key pieces of information about the tax implications of the PPP. That said, it should be noted that this piece is not intended as tax advice but rather key considerations for employers who signed on to the PPP.
Understanding the Tax Implications of Relief Programs
From a tax standpoint, PPP funds are not considered revenue, despite the fact that the money was intended to offset revenue that was lost. The PPP was issued as a loan – one for which most businesses were able to receive forgiveness. Even if you received PPP funds, you can still claim the Employee Retention Tax Credit, though, some earning are not allowed including earnings paid with PPP funds that are ultimately forgiven, payments through the Emergency Medical Leave Act, and Work Opportunity Tax credits.
Considering the fact that PPP loans can be applied retroactively for 2020, it has a lot of value for many businesses that were hit hard by the pandemic. However, it is essential for employers to understand that that the tax deduction of those wages will be significantly reduced as a business expense by receiving the tax credit. For instance, if you paid $44K in wages and received an Employee Retention Tax Credit of $30K, you would only be able to claim the difference ($14K) as a tax-deductible expense.
Additionally, some employers utilized Social Security deferral. As part of the Coronavirus, Aid, Relief, and Economic Security Act (CARES), this program included a suspension of employer payments to the government. While the deferral period for this program ended in 2020, the tax liability was only deferred, not waived. Therefore, the money is still owed.
Opportunities for Assistance
Some businesses such as entertainment venues and the like that were forced to close their door due to the pandemic are eligible for a grant for Shuttered Venue Operators, included in the last round of COVID-19 relief. However, by receiving a PPP Loan, you are no longer eligible to receive the grant. Venue operators trying to obtain this grant must provide documentation of the impact that the pandemic has had on their business when applying.
Another major relief measure was an update to the allowed payment methods for employment funding. Section 127 of the tax code allows businesses to help pay off employee student loan debt. This can be a valuable benefit to employees with student loan debt as it allows businesses to help pay employee debt without tax implications. Section 127 was extended through the end of 2025 and is a great opportunity to add more relief.
These are just a few examples of the many opportunities that businesses have with current COVID-19 relief programs. You’ll want to review information from the US Treasury Department for more details on the different relief options and their tax implications.
With all of the new federal programs that have been implemented to provide businesses with relief and the many revisions among them, it is fairly certain that your tax professional will need to do more research to understand the tax implications and how they will impact your business. With this, employers should understand that the process of filing will likely take longer than usual, so they should file as early as possible.
Another great opportunity for employers to find assistance is through Small Business Development Centers (SBDCs). SBDCs are a service of the Small Business Administration that offer free business advice for employers. A consultation would likely help to uncover even more potential opportunities to reduce tax liability and avoid costly filing mistakes.
The events of the past year have altered many aspects of daily life, with none more jarring than the switch from in-person to remote work. As organizations of every size and industry have pivoted to accommodate this “new normal”, they and their workforce have come to intimately understand the benefits and drawbacks of a remote working environment. Whether your organization chooses to adopt this practice in perpetuity, or offer remote work as an option to your employees after it’s safe to return to the office, your organization should consider altering its benefits package to meet the health-related changes presented by a remote work setting.
With a new environment come new challenges, and your employee benefits should both reflect and seek to address those new challenges in order to retain your current talent, entice new talent, and save on healthcare costs at both the individual and organizational level.
In this post, we’ll cover:
New difficulties to employee health presented by a remote work setting
Benefit adjustments that address these difficulties
How to meaningfully implement these changes
New Environment, New Challenges
While there are many advantages to working from home, there are also several critical obstacles that can negatively impact employees. The most immediate threat is, namely, stress. Workers are currently inundated with uncertainty, from concerns about their own health and the health of loved ones to unexpected financial strain. Employees may also be feeling alienated from their coworkers, friends, and family, causing a decrease in both happiness and productivity in multiple areas of their lives. According to recent research emanating from the CDC, Americans reporting feelings of anxiety, depression, and loneliness in 2020 have tripled in comparison to the previous year.
While some of these feelings may eventually be alleviated by the widespread adoption of a vaccine for the virus that causes Covid-19, remote work environments still present many obstacles that can lead to increased emotional and mental strain. A lack of social interaction with coworkers and misunderstandings stemming from inadequate or poor communication are just some of the hindrances that can increase feelings of anxiety, estrangement, and hurt job performance.
There are numerous studies outlining the direct, negative impact that emotional and mental stress can have on one’s physical health, including heart disease, high blood pressure, and abnormal cholesterol levels. Better mental health advocacy and the increasing amount of evidence that directly links mental and physical health are leading many organizations to offer additional or better benefits that seek to address mental and emotional health in order to drive down healthcare costs now and in the future.
Adjusting Benefits to Meet New Needs
Remote work environments, while convenient, can be mentally and emotionally isolating. These feelings of isolation can often progress into chronic health conditions that can be expensive to both the employee and the employer provided health plan. Mental and physical health are inextricably linked, and the effects of the pandemic have only accelerated the acceptance of this fact and the adoption of programs to address it. As more and more organizations are making the partial or full switch to an entirely remote workforce, employers are simultaneously beefing up their benefits that address the mind-body connection.
One of the simplest, most cost-effective ways to redesign your benefits to include mental and emotional health resources is to adopt a single solution that combines mental wellbeing and chronic condition management through preventative wellness. According to recent research, employee wellness programs provide a 6:1 return on investment in healthcare cost savings.
Chronic diseases often emerge through poor preventative care, costing employers millions of dollars every year. By refocusing your benefits to be employee-centric and encouraging your employees to adopt healthier mental and physical lifestyle habits, employers can achieve monumental cost savings now and in the future. Some examples of wellness programs are those that incentivize employees to keep track their own health data through general physical assessments and friendly competitions. Stimulate your employees to discover and improve their body mass index by offering them a financial reward or paid time off if they complete an annual physical each year. Additionally, creating some friendly competition between employees to engage in healthy habits in exchange for a prize is another great way to engender adoption of good lifestyle choices. By incentivizing employees to participate in preventative care, they may discover they are at risk for certain chronic conditions early enough to redirect the path they’re on.
Support the Transition to Yield Best Results
Open and honest communication is always important in the workplace, but it is especially critical in a remote environment. Most employees are currently working remotely, and there is an increasing likelihood that many companies will decide to go fully remote for the foreseeable future.
One of the most important things that your HR team and organizational leaders can do during the adoption of new benefits programs in any setting is to maintain transparency and open lines of communication between themselves and their employees. Providing employees with the freedom and safety to discuss the obstacles they may be struggling against can help employers to understand the needs of their employees and the resources they may need to be connected to, such as mental health counseling or a one-on-one meeting with your company’s benefits specialist. In addition, open and authentic lines of communication between employees and leaders helps to engender a deeper level of trust. Getting on your employees’ level and being receptive to their needs will increase the likelihood that employees will take advantage of new wellness programs that your organization will offer.
Key Takeaways
Remote working environments present unique challenges, but these challenges also offer new opportunities to encourage employee self-care that can save everyone time, effort, and money. Employees that understand and use the resources available to them are more likely to be productive, long-term members of your team-and will act as great ambassadors to new prospective talent. By offering employee-centric benefits that address both the mind and the body, employers can ensure the wellbeing of their employees. Remember:
Employers should acknowledge the new challenges to employees presented by remote work environments and adjust their benefits packages accordingly to meet these challenges.
Employer benefits packages should include wellness programs that offer incentivized programs and resources for those struggling with mental and emotional health issues, as these issues often manifest as chronic physical conditions. Studies have shown that preventative care programs save employers millions of dollars healthcare costs.
Facilitate and encourage the regular use of the wellness program and other new employee resources through open and honest communication between leaders and employees.
Navigating all of the challenges and operational changes related to the COVID-19 pandemic has been difficult for both employers and employees. Thankfully communication between the two has played a pivotal role in keeping employees safe and healthy. Now, with the FDA having issued emergency use authorization for two vaccines, the long-awaited relief for COVID-19 is here. While the initial supply of vaccines has been allocated for people in specific groups, it’s important that employers begin planning for when access to the vaccine becomes available to the general public.
Research conducted by the Kaiser Family Foundation showed that 70% of Americans polled said they will get a COVID-19 vaccination. While many feel optimistic about the release of vaccines, the topic doesn’t come without challenges. Employers need to be diligent when considering things such as whether or not the vaccine will be encouraged or required and how they will get buy-in from employees who are hesitant about the idea.
This article covers the important questions employers need to ask themselves, as they navigate the legal risks and the logistics of employee vaccinations.
What to Communicate
When it comes to promoting and providing accurate information about COVID-19 vaccinations, employers play an important role, as many employees will look to their employers for this kind of guidance. The big picture that needs to be reinforced with employees is that getting vaccinated will likely be the driving force that allows for a safe return to work.
Employee vaccinations need to be lead with facts and transparent communication. Employee communication is the most important factor in seeing vaccination plans come to fruition. With that, as employers develop their plans for COVID-19 vaccinations, they must consider sharing the following information with their employees:
General COVID-19 vaccine information:
Overview of available vaccines and their differences
Facts and myths about the vaccine
How vaccines work
Benefits
Efficacy and safety
Possible side effects
Vaccination timelines from the Centers for Disease Control and Prevention (CDC), including distribution phases for targeted groups and the general public
Vaccination timelines for the organization
Organization vaccination policy
Vaccination sites (whether at authorized clinics and pharmacies, or on-site)
Vaccination costs (including potential paid time off for getting vaccinated or recovering from any side effects)
Workplace COVID-19 safety precautions or protocols, such as continuing to wear a mask and avoiding close contact in the workplace
Educational resources to learn more about COVID-19 vaccines
A thoughtful and proactive approach to employer communication efforts will undoubtedly be more effective than a reactive approach. Employers need to anticipate the most common vaccine objections and develop a plan for responding in a way that mitigates concerns and doubts. This should be done by providing accurate information, engaging with concerned employees, and offering educational resources on the vaccines.
It should also be stated that to provide continuity in what hesitant employees might be hearing about the vaccines, your messaging should also reflect what is being communicated by local health officials and healthcare providers. Point to research and guidance from the CDC and other public health experts, but keep in mind that CDC guidelines continue to evolve and are subject to frequent changes.
How to Communicate
The opinions and attitudes toward the vaccinations are certain to vary among your employees. It’s important for employers – as with any communication – to tailor their approach to their individual employees. An effective approach isn’t one-size-fits-all. Employers need to be mindful of this and conduct some research to better understand their employees. Depending on what your workforce looks like, you might consider things like, pretesting content ideas or making the information available in different languages if necessary.
Sticking to the Facts
There is a lot of opinion surrounding the COVID-19 vaccines, so it’s important that you stick to the facts and avoid using charged jargon or strong language. Building a strong case supported with science and data in concert with a sensitive and respectful tone will likely be more successful when communicating with employees who are unsure about getting the COVID-19 vaccine. Compassion and transparency will help to create employee buy-in and overall support of workplace vaccination plans.
Highlighting values such as unity and interconnectedness will likely be effective in communications as they motivate employees to act. Ultimately, the end goal here is to protect employees and make their communities safe from the threat of COVID-19. The pandemic has certainly taken a toll on most employees. By leading with values, you emphasize protection for the employee, their loved ones, and the coworkers around them.
Using Communication Channels
In order to best communicate with employees, employers should consider their existing communication channels and how they can be leveraged to relay information about the COVID-19 vaccination. Here are few tools that could help to build workplace confidence in the vaccine:
Company intranet
Emails
Fact sheets
FAQs
Meetings or town halls (including virtual town halls)
Posters
PowerPoint presentations
Social media
Testimonials
Videos
The overall goal of this effort is to reach all employees, so it’s important to note that information consumption differs between on-site employees, non-wired employees, and remote employees. The most effective communications strategy for informing and engaging employees is one that leverages multiple channels.
Listening
Just as important as what and how employers are communicating to employees, is listening to what employees have to say. It’s important that employers aren’t ignoring the concerns of their employees about the COVID-19 vaccines. Employers should identify a point person within their organization who can field and address questions or concerns and provide information in response. If the workforce is spread across multiple locations or working remotely, it is especially important that there is two-way communication between employers and employees. Not only is it important to stay in touch with how employees feel, but offering tailored content that addresses their concerns will help increase employee buy-in. Employers have an opportunity to demonstrate that they are truly listening to and care for their employees.
When to Communicate
Because the vaccines are out and already being administered to people across the country, the time to start communicating with employees is now. While it might take some time before the general public has access to the COVID-19 vaccines, it’s important to start planning with employees now. It’s all about starting the dialogue and meeting employees where they are. Use this time to be thoughtful and sympathetic to employee concerns.
Employers should start communicating that they are monitoring the availability of COVID-19 vaccines and developing a plan for when they become available to the general public while highlighting how it will have a positive impact on the workplace and other organization needs. Most importantly, employers must listen to and address the concerns of their employees to help build the necessary buy-in for the COVID-19 vaccinations.
For More Information
In addition to the considerations above, employers should consult employment law counsel to determine whether there are unique risks to consider for their specific organization and industry.
Employers are playing a vital role in helping promote COVID-19 vaccines. For more information on the pandemic and keeping your workforce safe and informed, be sure to check out our COVID-19 Resource Center.
In late January 2021, the Occupational Safety and Health Administration (OSHA) issued updated guidance on mitigating and preventing the spread of COVID-19 in the workplace.
This guidance is meant to help employers and workers determine appropriate COVID-19 control measures, and to educate employers and workers about the risks of being exposed to or contracting COVID-19 in the workplace.
In this post, we’ll be highlighting the most important aspects of this updated guidance and what employers need to know moving forward. Specifically, we’ll discuss:
OSHA released this updated guidance with the purpose of helping employers plan their COVID-19 prevention and mitigation strategies. OSHA strongly recommends that employers implement COVID-19 prevention programs in the workplace, especially in industries where employees are unable to work from home. The most effective mitigation strategies engage workers and their union or representatives in strategy development, according to OSHA’s recommendations.
The guidance covers the following:
Hazard assessments
Measures to limit the spread of COVID-19 (roles of employers and workers and training on COVID-19)
Isolation or separation measures of infected workers from the workplace (physical distancing, installing barriers or staying home)
Use of personal protective equipment
Improvements in ventilation, hygiene and sanitation measures
We’ll discuss some highlights about some of the above topics in the following section.
Guidance Highlights
In this section, we’ve compiled some of the most important points from OSHA’s new guidance, organized into the sections that we explained in the previous section:
Hazard Assessments
Employers should conduct a hazard assessment of their workplaces. According to the new OSHA guidance, the purpose of this is, “…to identify potential workplace hazards related to COVID-19.” The guidance also suggests that, “This assessment will be most effective if it involves workers (and their representatives) because they are often the people most familiar with the conditions they face.”
Isolation or Separation Measures of Infected Workers from the Workplace
The OSHA guidance strongly recommends that employers do everything they can to minimize the negative impact of quarantine and isolation on infected workers. Specifically, they suggest:
Allow them to telework or work in an area isolated from others, when possible. If not possible, allow workers to use paid sick leave.
Consider implementing paid leave policies to reduce infection risk for everyone in your workplace.
Remember that The Families First Coronavirus Response Act (FFCRA) provides certain employers 100% reimbursement (primarily through tax credits) to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. This option will remain through March 31, 2021.
Use of Personal Protective Equipment (PPE)
In the updated guidance, OSHA acknowledges that not every industry can allow employees to work from home. In many industries, the only way for employers to perform their job responsibilities is to be at work in person. In this case, the use of PPE is necessary. Specific guidance related to employer provision of PPE includes:
Determine what PPE is necessary to adequately protect your employees.
Provide all PPE, if necessary, including respirators, face shields, protective gowns, and gloves, to the workers at no cost.
Make sure to provide PPE in accordance with relevant OSHA standards and other industry-specific guidance. Later in this post, we’ll explain where you can find industry-specific guidance.
Understand that there are instances in which PPE is not required under OSHA standards or other industry-specific guidance. Some workers may have a legal right to PPE as a “reasonable accommodation” under the Americans with Disabilities Act (ADA). In other cases, workers may want to use it if they are still concerned about their personal safety (for example, if a family member is at higher-risk for severe illness, wearing a face shield in addition to a face covering as an added layer of protection). Employers should encourage and support voluntary use of PPE in these circumstances.
Improvements in Ventilation, Hygiene and Sanitation Measures
In addition to PPE, providing resources to help your employees maintain good personal hygiene is important to help them mitigate the risk of being infected with COVID-19. Specific recommendations include:
Provide tissues and no-touch trash cans.
Provide soap and warm or tepid water in the workplace in fixed worksites.
Place touchless hand sanitizer stations in multiple convenient locations throughout the office.
Provide workers with time to wash their hands often with soap and water (for at least 20 seconds) or to use hand sanitizer.
Place informational posters that encourage hand hygiene and physical distancing to help stop the spread of COVID-19 at the entrance to your workplace and in other workplace areas where they are likely to be seen. Be sure to include versions of the poster in different languages.
Promote personal health monitoring and good personal hygiene, including hand washing and good respiratory etiquette.
The supplies necessary to carry out each of the above hygiene recommendations should be provided at no cost to employees.
Other Measures to Limit the Spread of COVID-19
In addition to everything listed above, OSHA has recommended the following best practices to consider in order to limit the spread of COVID-19 in the workplace. Visit OSHA’s updated website for more information about these recommendations.
Assignment of a workplace coordinator.
Identification of where and how workers might be exposed to COVID-19 at work.
Identification of a combination of measures that will limit the spread of COVID-19 in the workplace, in line with the principles of the hierarchy of controls.
Consideration of protections for workers at higher risk for severe illness through supportive policies and practices.
Establishment of a system for communicating effectively with workers in a language they understand.
Educate and train workers on your COVID-19 policies and procedures using accessible formats and in a language they understand.
Isolating workers who show symptoms at work.
Performing enhanced cleaning and disinfection after people with suspected or confirmed COVID-19 have been in the facility.
Providing guidance on screening and testing.
Recording and reporting COVID-19 infections and deaths that occur in the workplace.
Implementing protections from retaliation and setting up an anonymous process for workers to voice concerns about COVID-19-related hazards.
Making a COVID-19 vaccine or vaccination series available at no cost to all eligible employees.
Not distinguishing between workers who are vaccinated and those who are not.
Industry Specific Guidance
OSHA has published a separate webpage with guidance for specific industries (click here to access this page). Some specific industries that are included are:
Airline Operations
Construction
Dentistry
Food Manufacturing and Processing
Laboratories
Manufacturing
Oil and Gas Operations
Pharmacies
Retail
Waste Management
Many other industries are included on the website, so be sure to take a look to see what is recommended for you and your employees.
What Next for Employers?
Keep in mind that OSHA will continue to update the guidance over time as new developments arise. OSHA fully intends to include additional situational and industry-specific guidance as we learn more about COVID-19 moving forward.
Employers should review this recent and any future guidance carefully and implement any new recommendations as applicable. Employers should consider assigning someone on their staff to regularly monitor the OSHA website for any changes in COVID-19 best practices and standards.
As we mentioned in the previous section, OSHA has published many industry-specific recommendations. Business leaders are strongly encouraged to review the specific guidelines that OSHA has provided for their industries.
Key Takeaways
OSHA has issued important updated COVID-19 guidelines for employers. These guidelines can be summarized into the following themes:
Hazard assessments
Measures to limit the spread of COVID-19
Isolation or separation measures of infected workers from the workplace (physical distancing, installing barriers or staying home)
Use of personal protective equipment
Improvements in ventilation, hygiene and sanitation measures
Industry specific guidelines.
Employers should carefully review the specific details of this guidance, which we’ve summarized in this post and are also available by clicking here. Employers should also consider assigning someone on their staff to regularly check back on OSHA’s website for further COVID-19 prevention guidelines.
In the year 1970, per capita annual health care costs averaged around $1,848 (in today’s dollars). In 2019, that number increased to $11,582.
Over the last forty years, this increase in health care costs has reached the pockets of employers—on average health care costs are more expensive now than they have ever been before.
This change has led company CFO’s to take a much more active and expended role in health plan design. In this post, we’ll discuss this trend.
Specifically, we’ll talk about:
The Ongoing and Increasing Trend of CFO Involvement in Health Plan Design
What Is Causing This Trend
What Should Business Leaders Do About This
The data covered in this article was collected by cutting-edge benefits firms that collectively support thousands of employers across the U.S.
The Ongoing and Increasing Trend of CFO Involvement in Health Plan Design
A recent survey has produced significant evidence that supports the idea that CFO involvement in health plan design will continue to increase. Consider the following findings from the survey:
Over the past three years, only 32% of organizations have made changes to manage health care costs. However, 55% of organizations expect to make changes over the next three years.
74% of business leaders indicate that their finance department has had an active role in making decisions related to their health care program over the last three years. However, this number increases to 87% when asked if their finance department will have an active role in the health care program over the next three years.
48% of business leaders stated that their finance and HR departments shared responsibility for the organization’s overall health care management and strategy over the last three years. When asked the same question about what they expect over the next three years, the number increased to 58%.
The data is clear. Health care costs are increasing, and organizations will be making changes in the near-term future to adapt. These changes will involve an increased role of the CFO (and the finance department in general) in the management of the organization’s health care program.
What Is Causing This Trend
The driving forces behind the trend explained in the previous section are both simple and complex at the same time.
From a simple perspective, the trend is being caused by a decades-long increase in health care costs for employers. In order for company leadership to manage the rising costs of their health care plan, they must instruct the CFO and the finance department to have an increased role in decisions related to the plan.
However, recent events have made this trend even more complex. The COVID-19 pandemic has created many questions about the future of health care around the globe and the associated costs. Unfortunately, many of these questions remain unanswered. CFOs must become increasingly involved in health care plan management in order to brace for whatever storm lies ahead in the industry.
What Should Business Leaders Do About This Trend?
It may seem as if an increased role of the CFO in what has traditionally been an HR realm will be sure to cause contention within many organizations. The minds of CFOs and HR managers functions differently, there is no doubt about that.
Fortunately, there are many trusted sources of support to help organizations adapt to these structural and responsibility changes.
According to findings from the same survey that was cited earlier, “Nearly all employers think strategic conversations and innovative solutions are valuable in their relationship with a consultant or broker.” In other words, business leaders are becoming increasingly willing to work with benefits consultants and brokers to help them navigate the uncertain future of the health care industry.
The following solutions which are traditionally provided by benefits consultants and brokers were specifically mentioned in the survey:
Innovative solutions
Strategic conversations
Benchmarking
Market developments and industry trends
Actuarial and financial advice
Fully bundled services and solutions
Business leaders who took the survey overwhelmingly indicated that they will find significant value in discussing the above items with benefits consultants or brokers moving forward.
If you and your business find yourself in need of a more hands-on benefits consultant, be sure that you know what to look for when considering different options. Consider the following tips:
Make sure the broker offers services that can be adapted to your specific needs and business model.
Consider the broker’s approach to cost-savings. Will they offer your business cutting-edge plan design options in order to control benefits spend?
Take a close look at the pricing model of the consultant or broker. Do they work on a commission or fee only basis?
Key Takeaways
Health care costs are increasing, both for individuals as well as businesses. A result of this trend is that company CFOs and finance departments are becoming increasingly involved with the management and decisions related to the company’s health care program. As we soon will enter the post-pandemic world, there is much uncertainty related to what effect the lingering effects of COVID-19 will have on the global health care system. Due to this uncertainty, it will become even more important for the CFOs to be involved moving forward. Businesses can adapt to this trend in healthy ways by working with a more hands-on benefits broker.
COVID-19 changed the landscape in just about every aspect of our daily lives, including the way we work, the way we live, and, as employers, the way we provide access to healthcare to our teams.
This year, we expect to see the continued growth of many themes and trends at a pace that before seemed impossible. COVID-19 shook the healthcare industry, disrupting the normal course of innovation in unimaginable ways. However, this set a new precedent – one in which no aspect of our healthcare structure is seen as unchangeable.
Rapid Growth in Telehealth
Last year, mandatory shutdowns due to COVID-19 created considerable demand for telehealth services. However, although the majority of mandatory shutdowns have since been lifted, the utilization of telehealth services remains higher than ever before. Before the pandemic, telehealth visits made up only 1% of total visits. While this number jumped to nearly 50% amidst shutdowns in April of 2020, telehealth visits now make up roughly 11% of total visits.
In the past, telehealth was hampered by skepticism and its impersonal regulatory environment. While it was gaining popularity due to its convenience, the progress was slow. One main issue prohibiting the wide adoption of telehealth services was the fees associated with it. However, the Centers for Medicare & Medicaid Services (CMS) most recent fee schedule made temporary changes to reimbursement permanent, making it more accessible.
Improved accessibility and reduced variability of care allow telehealth to offer better population health outcomes – creating buy-in from both providers and consumers. It’s not a matter of if telehealth is a viable method of healthcare, but how it fits into the current system. What is the appropriate mix of remote and in-person care?
While the new reimbursement structure solidified the concept for many, the popularization of telehealth was gaining momentum with both providers and patients before its implementation. In a recent study conducted by The Harris Poll, research showed that roughly 80% of patients who tried telehealth during the pandemic plan to continue utilizing it.
Aside from primary care – which is poised to be both a long-term and high-volume use for telehealth – other procedures are also vamping up their utilization. For example, mental health services have increased their accessibility through telehealth. This couldn’t come at a better time, given the rising issue of mental health in the U.S. amidst the pandemic. And, telepsychiatric services have become more popular for hospitals and clinics that have limited or no psychiatric staff when treating more severe mental health conditions.
In 2021, if an employee has a phone or computer, they can have access to on-demand healthcare. While more in-depth services might require you to be in-person, the realization that certain parts of the healthcare process can be managed remotely is growing expeditiously.
Technology Driven Healthcare
One place that is often overlooked as a viable clinical setting is an employee’s own home. However, in-home care can be incredibly valuable to many. Those who are able to receive care in-home will benefit from lower costs, and they might even prefer it over the traditional healthcare setting. In turn, many providers are showing an increased interest in an in-home approach to healthcare. This would provide a more holistic list of services including preventative care, ancillary care, and support solutions.
COVID-19 and the impact of the pandemic have permanently shifted the standards of primary healthcare. It has fast-tracked innovation and the embrace of telehealth. With the lack of resistance to this market and the digitization of the entire world, there are several technology-driven trends that you can expect to grow in 2021.
1. Remote Patient Monitoring
In 2019, roughly 88% of hospitals invested in remote patient monitoring technology. In 2021, remote patient monitoring is expected to continue to grow. As technologies that can monitor vitals become more popular (i.e. smartwatches), monitoring and treating patients suffering from chronic conditions such as diabetes and heart disease.
2. Telehealth
In March of 2020, the CMS began allowing expanded telehealth services through Medicare. As a result, many major insurance providers such as Blue Cross Blue Shield, Humana, and UnitedHealthcare expanded their coverages. At the end of 2020, the CMS completed the permanent expansion of telehealth. In 2021, the utilization of telehealth will continue to grow.
3. Telemedicine
In a recent study by the JAMA Network, research showed that the use of telemedicine in the U.S. increased by nearly 2000% between January and June of 2020. As care delivery to the home continues to grow, providers will also continue to virtually prescribe medications, while relying on remote patient monitoring to help make better care delivery decisions.
Rising Government Populations
In 2020 we saw rapid growth in the popularity of Medicare Advantage plans. This trend will continue to grow in 2021 as the popularity of managed care and value-based contracting increases. Total enrollment for Medicare Advantage plans in 2020 was nearly 25 million or 40% of all beneficiaries – a 6% increase from the number of enrollments in 2019.
Now that we have a new president and administration in the White House, we can expect to see new priorities with government-sponsored healthcare programs. Possibly the greatest of these shifts in government programs is Medicaid. Between 2017 and 2019, Medicaid enrollment declined consecutively. However, since COVID-19 and its impact on the economy, enrollment is on the rise. In fact, 2020 saw an additional 5 million Americans added to Medicaid.
There is an apparent need for revisions to how we manage and pay the Medicaid population. Low reimbursement rates result in hesitant providers when treating Medicaid patients. This often means extended wait times for Medicaid patients seeking care. It’s no secret, Medicaid patients have long struggled to receive good health outcomes compared to those under commercial healthcare (Medicare), and in some instances, those who are uninsured.
More than 90 million Americans are now covered by Medicaid. That’s up from roughly 75 million before the outbreak of COVID-19. Additionally, the pandemic caused state budgets to tighten, forcing them to look to risk-based contracting arrangements to pay for it. As a result, budgets have become more predictable and the financial risk is moved to the managed care organizations that manage the Medicaid population.
These risk-bearing arrangements bring significant advantages in terms of financial savings due to the co-morbidities and the impact of Medicaid enrollees that have multiple conditions. Better management of these high-cost Medicaid patients could remove considerable amounts from the system. In addition, it increases the possible productivity for the working-age population who need less care.
Self-Funded Employers Will be Empowered to Control Healthcare Costs
While many attempts to curb healthcare costs have been made by providers, employers, and insurers alike, one thing is still apparent – The way that healthcare is both priced and paid for in the U.S. is unsustainable and costs continue to increase across the country. In 2020, both single and family premiums increased by 4% while wages increased by only 3.4% and inflation saw an increase of 2%.
That said, one group has the power to improve the affordability of healthcare for both companies and their employees; self-funded employers. In 2020, 67% of workers with health coverage were enrolled in self-funded healthcare plans. That’s a 6% increase from 2019. Additionally, there were roughly 25 key mergers and acquisition transactions in 2020 in the healthcare space – a 92% increase over 2019. They included reference-based pricing companies, population health applications, care navigation, pharmacy benefits management, and more healthcare plan services. In 2021, we expect to see more growth in these and similar trends.
1. Physician Quality
Avoiding network friction creates limitations to health plans and their ability to guide individuals to physicians based on quality. In response, employers are now searching for ways to navigate members through the use of independent vendors. In 2021, the expectation is that these vendors will continue to utilize quality metrics such as second opinion solutions, physician quality scoring, and centers of excellence to improve their solutions.
2. Pharmacy Cost Containment
The rapid growth of pharmaceutical drug costs continues to be a significant component of healthcare spending, particularly in employer-sponsored health plans. In addition, mid-size and smaller employment groups are receiving poor member and utilization management services from large pharmacy benefits managers. In response, employers are doing more to define pharmacy benefits and participating in aggregation models to create both purchasing power and more focused clinical services.
3. Specialty Condition Management
There has been an increase in popularity for niche solutions, solutions that are built around small yet high-cost employee populations that account for a portion of total healthcare spending. With advanced tech foundations and data analytics, specialty condition management platforms create individualized solutions for employees while offering ROI tracking to employers so they can differentiate from more traditional solutions.
4. Benefit Utilization and Navigation
Better healthcare benefits aside, there is substantial demand for better access, education, and comprehension of the resources that employees have at their disposal. From the physician quality navigation listed above to ecommerce for products and services under the health plans, employers are finding ways to create engagement of the benefits while also managing costs effectively.
Behavioral Healthcare Demand Will Continue to Rise
In 2020, as the stigmas around mental health decreased, the behavioral healthcare market gained momentum. During the pandemic, the demand for behavioral healthcare services saw unprecedented highs as substance abuse, alcoholism, and suicide rates increased across the board. In 2021, we expect the demand for these services will remain strong.
According to a study by Acumen in 2019, research showed that the annual behavioral health market is projected to surpass $240 billion by 2026. Considering that roughly 80% of Americans reported having experienced significant stress due to COVID-19, we expect to see continued growth in individuals seeking behavioral care. In addition, there is a shortage of behavioral health providers in the U.S., and the shortage is expected to grow significantly over the next decade. With this in mind, we expect to see certain trends continue in 2021.
1. Improved Access to Healthcare
With the growing focus on behavioral health, we expect sustained efforts from both the government and private sectors to improve awareness and access to care. With the increased utilization of telehealth and telemedicine services, access to behavioral healthcare is increasing, allowing us to meet the growing mental health crisis in America.
2. Demand for New Solutions
There has been a considerable amount of capital invested into digital health platforms for providers, employers payers, and direct-to-consumer. Expansion of specific segments of behavioral health services is creating a heightened demand for IT solutions with behavioral health technologies. In 2021, we are expecting even more interest in this space from strategic and financial buyers alike.
3. Private Equity Investment
Since 2018, roughly 60 new behavioral health private equity platforms have formed. In 2021, the expectation is that private equity investors will continue to play an increasingly large role in behavioral healthcare.
As we begin to settle into the new year, it’s important to take some time to both reflect on the past year and continue planning for the year to come. While 2020 was an unpredictable year, through the chaos we find insights that will shape the future of the workforce and employee benefits.
While many experts have made predictions for what 2021 might entail, there are a handful of themes that have come to the forefront for most. Likely the most notable of these is the prioritization among employers to promote diversity, equity, and inclusion. Following a year of civil unrest and mass protests for social justice, it makes sense that there is more interest in DEI. And we are seeing more people of color filling roles in high-profile positions – inspiring others, and influencing change. Additionally, we’ve seen a growing interest in environmental, social, and corporate governance policies among corporations where ESG had traditionally been less of a priority.
While priorities have been shifting regarding social equality, we have also been enduring the impacts of a global pandemic. This has shed light on many areas that have been overlooked in the past, such as improved benefits for working parents, women, and low-income individuals. These emerging themes have played a major role in what experts believe will influence the benefits strategies of employers in 2021.
Meeting a Diverse Range of Needs
It has become apparent that a broad benefits plan for all isn’t an effective strategy for companies that are working to create a more inclusive and diverse workplace. Instead, the standard has changed to a need for personalized benefits. While a change to benefits that serve a wider variety of employee needs (mental health, childcare, etc.) has been in the works for a few years, the events of 2020 have and continue to accelerate the need for more inclusive, well-rounded benefit programs.
More Equitable Benefits
2020 brought with it a variety of new challenges for employers and employees alike. While working parents struggled with the stress of ever-changing childcare solutions, many single non-parents struggled with the mental health concerns caused by isolation. The differences in the varying needs of employees brought forth the need for empathy and a shift in the benefits and services offered by employers. The effects of these differences will influence employers to have a more equitable approach to the benefits offered moving forward.
The Rise of Social Benefits
Social benefits refer to things such as student loan repayment programs, commuter benefits, child care, elder care, and more. They are a response to what many employees consider their employer’s social responsibility. While student loan repayment plans were expected to be the big trend of 2020, the COVID-19 pandemic certainly had a big impact on the emergence of such plans. However, that idea and similar non-traditional benefits are continuing to become more important as we see a growing interest in social benefits.
An Emphasis on Connecting Remotely
Our daily working environments have changed dramatically this year and with it came many opportunities and challenges. For example, remote work has allowed employers to tap into a wider pool of talent. However, employers need to continue to prioritize the use of technology that helps their teams succeed and educate them on time management and skills that will improve productivity while working from home.
Surge in DEI-Based Recruitment Efforts
Among all of the realization of the past year, we have seen a significant focus on the need for effective DEI initiatives from employers. The new virtual environment is not only helpful to the continuity of businesses, it encourages DEI initiatives in the future. Employers are no longer limited by geographical location when acquiring talent, rather, the virtual environment enables them to leverage recruitment platforms to access a more diverse pool of talent.
A Focus on Inclusivity, Despite Social Distancing
It uncertain when we will return to working in the office again. Many employers are feeling the struggles of the disconnect between employees. While Zoom meetings are helping us stay connected, it doesn’t quite replace the feeling of seeing and collaborating in-person. In the future, it will be important for leaders to structure remote work in a way that puts inclusivity as the top priority. Regardless of what the future holds, it is important that employers create a uniform and inclusive experience that encourages employees to do their best work.
