The employee benefits landscape is in flux due to new blockbuster drugs with high costs for employers, changes under the Trump administration, and trending benefits that support employee concerns. SHRM spoke with Julie Stich, vice president of content at the International Foundation of Employee Benefit Plans (IFEBP), a nonprofit organization with 31,000 employer members.
One major challenge facing employers is how to cover GLP-1 drugs, which are highly priced. Some public-sector plans, like Colorado’s state employee plan, have already limited coverage due to costs. However, Stich expects that as the price tag becomes more stable, it may have a positive impact on financial health in the long term.
Employers are also concerned about menopause support and student loan benefits, which are expected to grow in popularity this year. Menopause support may include resources, paid time off, flexible work options, and allowing employees to work from home. Student loan benefits are another area of focus, with employers struggling to provide financial literacy education and emergency savings accounts.
The Trump administration’s impact on employee benefits is significant. The new administration has expressed interest in rolling back the Biden administration’s changes to the Employee Retirement Income Security Act (ERISA) definition of fiduciary and expanding health savings accounts (HSAs). Employers should watch these developments closely, as they may affect their plans’ financial stability and long-term effectiveness.
Overall, the employee benefits landscape is complex and ever-changing. Employers must navigate these challenges to provide supportive benefits that meet employees’ needs while managing costs effectively.
Source: https://www.shrm.org/mena/topics-tools/news/benefits-compensation/benefits-expert-on-glp1-drugs-trump-administration