As we prepare for 2024, we are in an interesting time for HR teams in that they are facing challenges such as back to office strategies and changing workplace expectations, all on top of a full plate of duties. Last week I attended the Northeast HR Association (NEHRA) Annual Conference, which brought together leaders and industry experts to delve into crucial topics that have become front and center HR today. This year’s conference explored vital themes, including mental health/well-being, innovative leadership tactics, and the importance of Diversity, Equity, and Inclusion (DEI). Here are the highlights from this enlightening event.

Nurturing Mental Health and Well-being

One major theme at NEHRA’s Annual Conference this year was meant health and well-being, a popular topic in the world of HR. The discussions were both insightful and innovative, with presenters emphasizing new trends and practices to help support employees’ mental health. Here are some presentations I found impactful:

– In the session, “Neuroinclusion in the Workplace: A Win-Win for Both Employers and Employees,” a well-being expert discussed strategies to support neurodivergent employees to foster workplace collaboration and effective communication.

-The Founder and CEO of Wellbeing Works, Shanna B. Tiayon discussed how HR departments can support employees experiencing trauma though proper communication and resilient HR structures.

– The closing keynote, titled “Transform Your Workplace Through Connection & Community,” focused on developing an understanding of the benefits of having a connected work community and how to develop inclusive programs.

Innovative Leadership Tactics

One of the most pertinent points discussed was the role of HR in shaping leadership. The event brought forward outside-the-box ideas for fostering leadership excellence, creating an inclusive environment, and retaining and developing potential future leaders. Below are some presentations I would like to spotlight:

– A presentation titled “Who’s on Deck? Succession Planning that Eliminates Fears and Reduces Cost,” reviewed the advantages of promoting talent internally and tips for developing middle management for leadership roles.

-A leadership development expert explored top management tactics and the importance of developing workplace conditions that bring out the best in people. The session was titled “Reimagining Managers: Why the Best Managers Don’t Manage People.”

– In the era of hybrid work, effective and efficient meetings can be challenging. The breakout presentation, “Mastering the Art of Meetings: Powering Up Your Gathering,” reviewed ways to prioritize productivity without sacrificing workplace culture during meetings.

Championing Diversity, Equity, and Inclusion (DEI)

Developing and enhancing DEI efforts continues to be a top priority for HR teams. The importance of setting measurable goals, conducting bias training, and engaging with underrepresented communities was emphasized. The conversations highlighted that DEI isn’t just an HR issue; it’s a business imperative. Organizations that embrace diversity are better equipped to innovate, excel, and adapt to the ever-changing global landscape. Here are a couple of presentations with insights I wanted to share:

– Two HR professionals discussed “Practical strategies to imbed DEIB Considerations Into Your Hiring Practices.” Some main points included implementing blind resumes, training hiring managers and recruiters on unconscious bias and diversifying the interview panel.

-In the session “Building a Personalized and Equitable Benefits Program,” the presenter discussed effective and realistic tactics to improve DEI efforts in employee benefits without breaking the bank.

In conclusion, the NEHRA Annual Conference 2023 proved to be a valuable platform for HR professionals to deepen their understanding of a plethora of challenges employers are facing. The event’s discussions and insights provided attendees with the knowledge and motivation needed to lead HR into the future, creating workplaces that are not only more productive but also more compassionate and equitable. The NEHRA Annual Conference continues to be a beacon for HR professionals in the northeast as they navigate the evolving landscape of the industry.

Push and Pull

The debate over workforce flexibility remains that: a debate. On the one side, many employers want to bring staff back into the office in-person, citing collaboration, camaraderie and productivity as driving forces. On the other side, (most) employees are reluctant to return to the office full-time after having enjoyed a mix of remote or hybrid work for years. This dynamic is not new and it’s a topic you’re likely tired of seeing on your news feed, but did you know that:

• 65% of CEOs at multinational companies said the “ideal” working environment would be in-office full time by 2025¹
• A Gallup survey reports that only 12% of employees want to work in an office full-time
• 80% of companies regret their initial return-to-office decisions and wish their approach had been more thoughtful, strategic, and in coordination with employee feedback²

In this environment with competing priorities and a difficult labor market, it’s important that both parties find a compromise, but this process can be difficult and nuanced. By conducting Alera Group’s Workforce Flexibility Trade-Off Survey, we set out to identify those areas that may constitute that compromise.

The Survey

We surveyed 1,500 full-time employees, split between hourly and salaried workers across a range of industries, job types, and income levels. We then pitted the following flexible options against each other, where survey respondents had to choose one over the other:

• Flexible Hours: Set own hours, shifts and break times
• Flexible Days: Elect compressed work week, still meeting full time requirements
• Flexible Location: Work from home, office or other location at their preference
• Paid Parental/Family Care Leave Policy: Formal policy that provides paid time off (outside of sick/vacation/PTO) to care for a child or family member
• Additional Paid Time Off Days: Paid days to use for things like sick or vacation

We asked which benefit they prefer, which benefit they value the most, and which is most important when it comes to cultural perception.

Key Findings

Survey results offered some valuable insights into solving for this tricky issue:

• In terms of order of preference, participants overwhelmingly selected additional PTO over other benefits
• The majority of participants would accept slightly less pay for additional PTO
• Flexible work is difficult to take away once offered
• A paid parental/family care leave policy speaks volumes about a company’s culture of supporting employees

Our Advice

If you’re one of the many organizations grappling with how to bring employees back to the office, we recommend a different approach based on your primary goal, as seen below.

• For employee attraction, the positioning of the offer is important
  • Consider additional PTO over salary
  • Understand cultural impact of a paid parental/family care leave program
• For employee retention, we recommend a phased approach where you decrease flexible option slowly, but over time replace that benefit with additional PTO

Overall, it’s important to set an intentional policy, and one that is tailored toward your workforce. To that end, please get in touch if you are interested in conducting a similar study for your specific population, or if you would like to see the full survey results in detail. Otherwise, click here to learn how to Benchmark Your Time Off Programs.

¹ KPMG 2022 CEO Outlook
² https://www.cnbc.com/2023/08/11/80percent-of-bosses-say-they-regret-earlier-return-to-office-plans.html

In today’s diverse and dynamic workplace, fostering a culture of diversity, equity, and inclusion (DEI) is not just a moral imperative but also a strategic business necessity. One critical aspect of this commitment involves designing employee benefits packages that ensure fair and equitable treatment for all employees, regardless of age, gender, income, education, geography, or any other characteristics. In this article, we will explore how employers and HR teams can enhance their DEI efforts through inclusive employee benefits packages.

Conduct a Comprehensive DEI and Benefits Assessment

To create a benefits package that promotes DEI, it’s essential to start with a thorough assessment of your organization’s current practices and culture. You may want to consider:

• Benchmark current programs through surveys, focus groups, data collection, industry tech and other tools to evaluate current pain points and employee trends.
• Collect and analyze demographic data on age, gender, income, education, and other relevant characteristics to understand representation and disparities.
• Team up with subject matter experts like our actuaries, data analysts, or clinical pharmacy team to understand utilization and what is driving your claims costs, as this will give you a picture of the different demographics and health issues represented in your plans.
•  Review existing health plan designs through different economic lenses based on your employees’ salary ranges, considering factors like coverage levels, deductibles, and co-pays.

Offer Flexible/Voluntary Benefits

One way to promote DEI in your benefits packages is by providing flexibility. Recognize that employees have different needs and circumstances. Consider offering a range of options to level the playing field, such as flexible work hours, remote/hybrid work opportunities, or voluntary benefits packages, allowing employees to select benefits that align with their individual requirements.

• Implement flexible work arrangements, such as flextime, earlier/later hours, or telecommuting, allowing employees to balance work and personal responsibilities.
• Introduce voluntary benefits such as disability insurance, hospital indemnity insurance, commuter benefits, etc. which allow employees to select benefits that fit their lifestyle and cater to their unique needs.
• Provide wellness days, caregiver leave or additional paid time off for employees to use as needed for personal reasons, including family responsibilities.

Address Healthcare Disparities

Healthcare benefits are a crucial part of any employee benefits package. To ensure equity, take steps to address healthcare disparities. Consider the following:

• Offer health insurance plans that include coverage for diverse healthcare needs, such as mental health services, transgender healthcare, and preventive care.
• Ensure that health plan networks include a wide range of healthcare providers to accommodate different geographic locations and healthcare preferences.
• Promote regular health check-ups and screenings through wellness programs, with a focus on educating employees about available resources.

Support Family and Caregiver Needs

Recognize that employees may have diverse family structures and caregiving responsibilities. To support DEI in your benefits package:

• Provide paid parental leave that covers all caregivers, including adoptive parents, and consider extending the leave duration for parents who give birth.
• Implement flexible scheduling options or remote work arrangements for employees caring for children, aging parents, or individuals with disabilities.
• If budget allows, consider stipends or other benefits related to childcare or eldercare services.
• Review current employee leave trends and industry patterns to identify what types of leave and support employees need most.

Encourage Financial Wellbeing

Financial wellness is a critical aspect of employee wellbeing. Consider these steps to enhance financial equity in your benefits:

• Offer retirement plans with automatic enrollment and contribution matching to promote retirement savings for all employees.
• Provide financial education and counseling services to help employees better manage their finances and plan for their future.
• Consider offering income protection benefits, such as short-term and long-term disability insurance, to safeguard employees against income loss due to an unexpected illness or injury.
• Provide student debt relief and education support resources to help employees of all backgrounds enhance their educational background without financial stress.

Promote Professional Development

To ensure DEI in career growth opportunities, invest in professional development benefits:

• Establish mentorship programs that match underrepresented employees with experienced mentors who can help guide their career growth.
• Offer tuition reimbursement or scholarships for further education or job-related certifications, with a focus on supporting employees from diverse backgrounds.
• Create leadership development programs that actively seek out and nurture talent from underrepresented groups, ensuring equitable access to advancement opportunities.

Raise Awareness and Foster Inclusivity

Create a culture of inclusivity by:

• Conduct regular DEI trainings/webinars for all employees to increase awareness of unconscious bias, microaggressions, and ways to promote inclusivity.
• Celebrate cultural and religious holidays and observances through inclusive events, workshops, or cultural competency training. Also, consider floating holidays that employees can use at their leisure to celebrate holidays meaningful to them.
• Establish a clear and confidential reporting system for employees to report discrimination, harassment, or bias incidents, with a commitment to investigating and addressing such concerns promptly.

Monitor and Adjust

Regularly review and assess the impact of your DEI-focused benefits initiatives. Solicit feedback from employees and adjust your benefits package as needed to address evolving needs and challenges.

• Continuously collect and analyze data on employee satisfaction, turnover, and the utilization of benefits to identify areas where adjustments may be necessary.
• Engage in regular dialogues with employee resource groups (ERGs) or diversity councils to gain insights and gather feedback on DEI initiatives.
• Stay informed about evolving legal and industry standards related to DEI in benefits and make necessary updates to your benefits package accordingly.

By conducting this recommended process, employers can proactively enhance DEI in their employee benefits packages, fostering a workplace culture that values diversity and promotes equitable access to opportunities and resources for all employees. Championing DEI efforts in benefits also often leads to greater outcomes in engagement, recruitment, and retention.

Our Senior Vice President, Prabal Lakhanpal was featured in a Global Captive Podcast episode, during which they discussed Spring’s client, The Haskell Company. Haskell is a privately-owned engineering, construction and architectural firm that was able to reduce insurance costs, optimize coverage, and introduce new lines of risk by switching to a captive. Check out the full episode here.

Running a small to medium-sized business (SMB) can be financially challenging, especially when it comes to providing competitive employee benefits and managing insurance costs, since economies of scale generally benefit larger organizations. However, with strategic planning and calculated decision-making, SMBs can maximize savings without compromising on the well-being of their employees. In this article, we’ll explore cost-saving methods for SMBs in the areas of health insurance and employee benefits.

1) Conduct a Comprehensive Benefit Audit

Before making any changes, start by conducting a thorough audit of your current benefits package. This will help you understand where your company is overspending or underutilizing benefits. Key points to consider:

• Employee Communication: Ask your employees which benefits are most important to them through surveys, emails, etc.
• Data Review: Analyze the usage of existing benefits and what is driving claims to identify areas where costs can be optimized or solutions should be introduced.
• Benchmarking: Compare your benefits package with industry standards to ensure competitiveness.

2) Emplore Self-Funded Health Plans

Many smaller organizations look past a self-funded model due to resource constraints and risk appetite, but various versions of self-funding can work for smaller employers. According to Kaiser Family Foundation’s 2022 Annual Survey, 35% of workers in small firms (3-199) are in a level-funded plan, a self-funding option. Level-funded plans often have a steady monthly rate employers contribute to cover claims, administrative costs, and stop loss coverage. Many of these plans limit offerings to smaller companies with fewer covered lives.

3) Leverage Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and Flexible Spending Accounts (FSAs)

Consider HSAs, HRAs and FSAs for employee healthcare expenses, or if you are already offering one of these solutions, be sure to communicate the offering and encourage utilization among your workforce. These help employees pay for medical expenses beyond what is covered by your health plan and are particularly well-suited to pair with a high deductible health plan. Some offer tax advantages and can help reduce the financial burden on employees demonstrating that the company is invested in them. Depending on what path is chosen, employers can contribute to the account.

4) Offer Telemedicine Services

Telemedicine services have gained popularity, especially in the wake of the COVID-19 pandemic. By offering telehealth options as part of your health plan, you can potentially reduce healthcare costs associated with office visits and encourage preventative care. In 2023, most health plans provide some level of telehealth, but allowances and nuances vary, and it is worth a closer look.

5) Implement Wellness Programs

Wellness programs can lead to healthier, more productive employees and lower healthcare costs. Consider offering incentives for employees who participate in wellness initiatives such as fitness challenges, smoking cessation programs, or health screenings.

6) Negotiate with Insurance Providers

Leverage your broker/consultant to negotiate with insurance carriers and ensure you are getting the best coverage at the best rate. Our team helps clients explore options for bundling different types of coverage or increasing deductibles to reduce premium costs, and regularly seek competitive quotes from multiple providers.

7) Promote Employee Education/Communication

Educate your employees about their benefits and how to use them effectively. By ensuring that employees understand their coverage, they are more likely to make informed choices, reducing unnecessary healthcare expenses. Effective open enrollment communication strategies are essential in ensuring employees take advantage of benefits offered.

8) Consider Voluntary Benefits

Voluntary benefits, such as dental, vision, and life insurance, can be offered at little cost to the employer. These benefits can be partially funded by the employer, or fully funded by employees, depending on your budget and strategy. In any case, it will help bring costs down and provide nontraditional and more customized coverage for employees based on their needs (e.g., pet insurance, identity theft protection).

9) Review and Adjust Annually

Market conditions and employee needs change over time. Regularly review your insurance, health plans, and benefits package to ensure they align with your business goals, budget, and employee demographics. Adjustments may be necessary to stay competitive and cost-efficient, and new tools and solutions are being launched at a rapid pace.

10) Seek Professional Advice

Consult with insurance brokers, benefits consultants, or financial advisors who specialize in working with SMBs. Subject matter experts, like our team at Spring, can help you navigate the complexities of insurance and benefits, ultimately saving your company time and money.

In conclusion, cost-saving methods in insurance, health plans, and employee benefits for SMBs require strategic planning and a commitment to employee well-being. By conducting regular reviews, being as targeted as possible, negotiating with providers, and exploring innovative options like telemedicine, SMBs can achieve a balance between cost savings and providing valuable benefits to their employees. Remember that a well-crafted benefits package can be a valuable tool for attracting and retaining top talent in a competitive job market. If you’re interested in reevaluating your current benefits package or wonder how your programs stack up, our consultants and actuaries would be happy to assist.

I had the pleasure of leading a panel last month at the 2023 VCIA Annual Conference entitled, “Tips for Communicating the Value of Your Captive,” and it was a lively discussion with great takeaways I wanted to share.

Background

Today’s economy is tough, and the insurance markets have hardened. As a result, organizations are in reactive mode, looking for combative strategies to mitigate bottom-line issues. A captive insurance program has long been a risk management tool that allows organizations to weather proverbial storms like these. For those organizations with a captive, risk managers might have to defend against a piggyback mentality from leadership or other stakeholders, because the current environment creates temptation to treat a captive like an ATM regarding surplus. In addition, goals and purpose surrounding a captive are likely to change over the years. As such, it’s important to be able to illustrate captive performance in tangible ways that will resonate with audiences outside the core captive team.

Captives as Problem Solvers

There is a time and place to leverage capital surplus from a captive, but a great strategy is to use that by pouring additional coverage and innovation back into your insurance programs. To do so, we recommend securing reliable relationships with your broker and actuary to understand your captive’s risk appetite, what problems could be solved via a captive, industry statistics and trends, and whether the risk is worth the reward for a particular initiative. TPA or data analytics partners are also critical to assess exposures and determine potential loss prevention measures. Lastly, your captive manager should serve as a valued second opinion and will help evaluate the ramifications of exposing equity in the captive to new potential losses.

The ultimate goal here should be to reduce the total cost of risk (TCOR).

To bring concepts to life, one of Spring’s clients used captive surplus to hire a return-to-work coordinator, which in turn improved overall disability and productivity goals. Another client worked to obtain sexual abuse & molestation coverage that was difficult to procure. A private equity firm was able to retain ransomware coverage after a significant claim hit and utilized the captive to buy down the retention for individual entities, mitigating premium increases.

Metrics to Consider

Every captive has different experience, objectives, and risks represented, so it is hard to pinpoint benchmarks that will hold true across every program. That said, there are some factors and calculations that should be top-of-mind regarding captive performance.

Qualitative

While numbers and hard ROI are often the priority, “soft” indicators, such as those listed below, should not be discounted.

• Goals achieved vs. intended purpose
• Ability of the captive to cover risks the commercial market will not insure
• Flexibility
• Risk distribution
• Captive expansion

Quantitative

For the numbers crowd like our actuaries, below is a non-exhaustive list of metrics to consider when working to gauge your captive’s success.

• Loss & expense ratio (i.e., combined ratio)
• Captive premium increase vs. commercial market increase
• Volatility of earnings by captive line of coverage, and in aggregate
• Leverage ratio (net written premium to surplus should be around 3:1 to 5:1 or lower)
• TCOR overall
• TCOR vs. market increase

Given the difficult markets we are facing as an industry, we are stressing to our risk manager clients the criticality of captive optimization, but also the need to truly have a pulse on your captive’s performance and be able to illustrate it to a wider range of stakeholders who may be under financial pressure. If you could use assistance in developing customized key performance indicators (KPIs) for your captive program, or in diving into these qualitative and quantitative measures at an organization level, Spring’s consultants and actuaries are ready to help.

Our Managing Partner, Karin Landry was quoted in a recent Captive.com article on potential savings when switching to a captive instead of the commercial market. Check out the full article here.

Executive Summary

In the ever-evolving landscape of employee benefits, wellness solutions have emerged as a pivotal focus point for employers with a long-term view of health and productivity. Recognizing the vital link between a healthy workforce and organizational success, employers are redefining wellness programs to meet the diverse needs of their employees.

Employee wellness programs have undergone a remarkable transformation since the start of the pandemic. Once limited to in-person fitness challenges and generic health screenings, these programs have evolved into holistic initiatives that prioritize the everyday wellbeing of employees (both inside and outside of work). Employers are now taking a proactive approach, aiming to not only prevent health issues but also enhance employee engagement, productivity, and job satisfaction. In a survey conducted by Glassdoor, 60% of job seekers reported that benefits and perks are a significant factor in considering job offers. A robust wellness program signals an employer’s commitment to employee well-being, making the company an attractive destination for skilled professionals seeking an organization that values their health and work-life balance.

What is the impact on healthcare spending?

Investing in employee wellness is no longer a discretionary choice; it’s a strategic imperative. The cost of poor employee health is significant, leading to decreased productivity, increased absenteeism, and higher healthcare expenditures. According to Harvard researchers, every dollar spent on employee wellness yields a reduction in healthcare costs of $3.27 and a decrease of $2.73 in costs related to absenteeism¹. A similar ROI study conducted by the International Foundation of Employee Benefit Plans determined that employers save between $1 and $3 on healthcare costs for every dollar spent on wellness initiatives.

These cost savings are from both direct and indirect triggers, and it’s important to also include more qualitative factors like retention and productivity when you look at the cost/reward analysis.

Point Solutions Overview

Employee wellness is an important yet broad and nuanced space. Over the last decade, we have seen a significant increase in point solutions dedicated to well-being outcomes, some of which include:

• Fitness Coaching, Apps and Trackers: Applications designed to support the physical health of employees.
  • Wearable devices connected to apps that track steps, calories burned, and other indicators have grown in popularity.Team Challenges via apps, such as walking/biking challenges, are great tools to encourage healthy habits amongst dispersed workforces. Incentives can be used to boost participation.
  • Digital fitness classes provide a library of specialized activities and workouts individuals can take advantage of to meet health goals.
• Nutrition/Weight Loss tools: Platforms that promote healthy eating and physical wellbeing practices. 
  • Dietary apps can provide an array of healthy recipes and record eating/snacking habits.
  • Weight management platforms offer a range of tools including nutrition plans, weight trackers and virtual support.
• Personalized Apps: Tailored resources that provide personalized goal tracking, and virtual coaching.
  • Smoking cessation tools and programs can help people track, reduce, and quit tobacco/nicotine consumption.
  • Alcohol misuse programs allow individuals to access workshops, webinars, and other tools to reduce drinking.
• Mental Health Support Platforms: Offerings that focus on stress reduction, mindfulness, meditation, and access to mental health care.
  • Sleep/meditation apps are being used to lessen stress, reduce anxiety and drive productivity.
  • Digital therapy platforms are great for reaching out-of-state and international workers.
• Financial Wellness: Programs that provide tools for managing financial stress, planning for retirement, and addressing debt.

What should I do as an employer interested in wellness point solutions?

For committed employers, point solutions should be just one component of an overarching wellbeing strategy that takes into account the following:

1. Assessing Current Health Trends: Analyze health data to identify prevalent health issues and trends within the employee population.
2. Designing Tailored Solutions: Use this data to inform decisions around point solutions. It is rare the overcommitting to point solutions will produce the desired results; we recommend a more pointed approach. Craft an approach that addresses specific needs, encompassing physical, mental, and emotional well-being.
3. Benchmarking and Surveys: Compare your offerings to industry standards and continually assess its effectiveness through employee feedback and measurable outcomes.
4. Incorporating Cutting-Edge Technology: This is where point solutions come in; leverage technology and tools to provide engaging and accessible wellness resources, from wearable devices to wellness apps.
5. Promote Inclusivity: Ensure that wellness solutions cater to a diverse workforce, taking into account geographic, cultural, and accessibility considerations.

The journey towards a healthier and more productive workforce begins with employers’ commitment to holistic wellness solutions. As employee needs evolve, so too must wellness programs. By embracing innovative models, tailoring benefits to specific needs, and fostering a culture of well-being, employers can embark on a transformative journey that not only enriches the lives of their employees but also contributes to the overall success of the organization. Wellness point solutions, if tackled thoughtfully, can be a tool in your toolbox to arrive at a healthier, happier, and more vibrant workforce.

¹ https://www.bravowell.com/resources/do-wellness-programs-save-companies-money

Demand for new weight loss medications continues to rise and employers remain concerned about budget impacts if they decide to offer these costly medications as part of their benefit package. These medications, known as GLP-1 agonists have skyrocketed in popularity and are thought to be “miracle drugs” by many. The reality is that weight loss requires a multi-modal approach and not all people who use them will achieve significant weight loss. Studies have shown that once discontinued, patients gain an average two-thirds of the weight back¹. The reality is there is no miracle cure, but these medications have helped to destigmatize obesity and make clear the benefits of taking a multi-faceted approach to sustain weight loss.

Employer Case Study

As is the case with many organizations, weight loss drug strategy was recently of particular interest to one of our clients, edHEALTH. The client was interested in the positive impacts yielded but was daunted by the complex dynamic of long-term cost versus benefit.   

Spring assisted edHEALTH in assessing a best practice avenue for weight loss drugs, keeping in mind that spending on obesity-related conditions result in approximately a 12% increase in total healthcare costs².  Wegovy (semaglutide) has an average price of approximately $1,349 a month, or more than $15,000 annually. That is more than double what the Institute for Clinical and Economic Review (ICER)³, a private entity that provides an independent source of evidence review and creates cost-analysis reports, recommends, instead stating that Wegovy should be priced somewhere around $7,500–$9,800 per year to fall into the cost-effective threshold.

We worked with edHEALTH and its PBM partners to fully understand their weight loss medication utilization management and monitoring parameters. As a member consortium, edHEALTH is committed to providing their member institutions with the information needed to assist them in determining the best cost-management strategies. Therefore, a key part of our evaluation was to prioritize the education of staff and faculty on the protocols and side effects of these medications to potentially narrow the interest to those highly motivated groups. There is no one size fits all solution, but there are specific points of consideration and educational resources that can help organizations of any kind address this topic with stakeholders.

Additional recommendations included:

• Ensuring plan participants understand that treatment should extend beyond the medication
  • A comprehensive approach is critical and ideally includes behavior-management coaching, nutrition support, an exercise plan, and accountability check-ins.
  • Non-medication initiatives might include fitness reimbursements, nutrition programs like WW (formerly Weight Watchers), and/or employee walking challenges. Incentives should be woven into these programs.
• Reauthorization requirements with the PBM should be in place (approximately every 6 months) to confirm patients are receiving the expected positive response to therapy related to goals.

For example, edHEALTH hosts an annual walking challenge between member schools, with prizes and check-ins along the way. The healthy competition creates a simple yet effective way to get employees moving more than they might otherwise, and a tactic like this pairs nicely with an overarching weight loss strategy.

Considerations for Employers

Ultimately the choice to cover these medications is an organizational decision, but it’s critical to have all the information necessary to make this decision, starting with a robust view of your population demographics. With high rates of obesity for most health plan sponsors, a prudent and thoughtful approach to expanding weight-loss coverage will be required. Attempts like this to tackle the obesity epidemic could produce long-term savings with lower overall healthcare costs, prevention of progression of existing diseases, and most importantly a better quality of life and employee experience. 

No matter your decision on offerings, the more you can offer through communications and education will help your plan participants make informed decisions and understand their role in achieving and keeping weight off. To realize tangible results, all parties must be committed.

Our clinical pharmacist and benefits consulting team is here to help you assess weight loss as a component of your benefits strategy, including not only weight loss drugs but also wellbeing initiatives and data analytics for monitoring success. Get in touch for assistance in navigating this nuanced and rapidly evolving area.

¹ https://www.nbcnews.com/health/health-news/happens-stop-taking-wegovy-ozempic-many-people-regain-weight-rcna66282
² https://www.hsph.harvard.edu/obesity-prevention-source/obesity-consequences/economic/
³ https://icer.org/news-insights/press-releases/icer-publishes-evidence-report-on-treatments-for-obesity-management/