Employers Bolstering Health Benefits in Competitive Market

A survey finds that 70% of large employers are planning health and benefit enhancements for 2023.

Over two-thirds of employers are planning to improve their health and benefit offerings in 2023 to attract and retain workers amid a competitive labor market, according to a study by Mercer.

The survey polled 708 organizations ranging in size, from fewer than 500 employees to 5,000 or more workers. Among large employers, 70% said they are planning on health and benefit enhancements in 2023, while 61% of all employers are conducting surveys on employee benefit preferences.

"In today's competitive labor market, employees are able to leave jobs for others offering only slightly higher pay," said Tracy Watts, senior partner and national leader for US Health Policy at Mercer. "Employers are looking to create a stronger bond with this workforce by offering health and well-being benefits and resources that their employees will value."

With health benefits being a priority for many workers, employers are revamping their health plans to appeal to talent.

The survey found 41% of employers will provide a health plan option with a low deductible or no deductible, such as a copay-based plan, while 11% are considering it.

Additionally, 11% offer free employee-only coverage for at least one plan option, and another 11% are considering it.

Over half of large employers (52%) said they will offer virtual behavioral healthcare, with 40% offering a virtual primary care physician network service.

When it comes to fertility treatment coverage, nearly a third of large employers will offer benefits such as adoption and surrogacy, while another third are considering it.

Family-friendly benefits are also a priority, with 70% of respondents currently offering or planning to offer paid parental leave and 53% providing or planning to provide paid adoption leave.

"Employers need to be really thoughtful and specific about their benefits enhancements to ensure they will get a return on their investment," said Watts. "This requires an understanding of the values and needs of their unique workforce."