Employee Benefit Trends That Are Shaping 2020
There are several changes on the horizon as a new year — and a new decade — begins. There are not only changes in contribution limits for health plans, but voluntary benefits will also be evolving. Here are several ways benefits will change in 2020, according to HRA administration company, Clarity Benefit Solutions.
The IRS has released 2020 annual contribution limits for Health Savings Accounts (HSAs): $3,550 for individuals (a $50 increase); $7,100 for families (an increase of $100); and individuals over the age of 55 can add another $1,000. Those with High Deductible, High Premium Health Plans have a minimum deductible of $1,400 (a $50 increase) for individuals; and $2,800 for families (up $100). HDHP out-of-pocket limits for individuals are $6,900, which is an increase of $150; and $13,800 (up $300) for families.
The Trump administration has also introduced the final HRA rule as of January 1, 2020. This rule enables companies of any size to offer their employees "individual coverage HRAs" of up to $1,800 per year. This is ideal for employees who may be unable to afford their employer's health premiums. Companies can offer this HRA to different groups of employees, such as full-time, part-time, salaried or non-salaried, and temps. This is so no employee is discriminated against in the workplace.
As far as voluntary benefits go, employers will offer many more options to promote financial wellness in the form of student loan repayment, tuition reimbursement, and 401(k) contributions. These programs will provide employees with the financial security they seek.
Employees also strongly desire flexible work hours, and this trend will become more popular in 2020. Flexible schedules and the ability to work remotely are extremely attractive benefit perks. Additionally, benefits such as on-site daycare and fitness centers encourage a work-life balance by allowing employees to save on commuting time and spend more time with family.
Perks that foster diversity are also up and coming. Examples include floating holidays, so employees have more of a choice over how they celebrate special occasions. If employees like to travel, offer them a perk such as a national park pass. Benefits that match each employee's lifestyle based on what matters most to them will surely be trending in 2020.