In today’s workforce, health benefits are under a new spotlight for a few reasons. For one: the COVID-19 pandemic has influenced employers’ and employees’ perspectives on healthcare in general, recognizing its critical role in the midst of our global health crisis. The pandemic has also exposed some existing flaws in our system as they relate to access and cost of care. Costs continue to be on the rise and individuals are left with a lot of the burden.

At the same time, employers are grappling with the talent turnover tsunami and striving to meet the needs of current employees who now work remotely. Naturally, the “cool office” perks of the past, such as plentiful snacks and ping-pong tables, aren’t wooing prospects like they used to.

The bottom line: It’s never been more important for companies to stand out with competitive benefits that are addressing the unique challenges of the era we’re in. Luckily, there’s an enormous – and long-overdue – amount of innovation happening in health benefits right now.

As we close out this year and move into 2022, here are four emerging trends that will benefit both employers and employees:

Remove cost barriers: The costs of health benefits continue to outpace what employers and individuals can keep up with. Since 2010, average family premiums have increased 55%, at least twice as fast as wages (27%) and inflation (19%), according to Kaiser Family Foundation. Historically, employers have reduced the pinch of premiums by offering high-deductible health plans. However, as deductibles rise, they become barriers to individuals seeking care. This leads to individuals often deferring care, or skipping it altogether, resulting in poorer health outcomes and employees feeling like they are not truly receiving any “benefits.” Savvy employers are identifying ways to control costs while offering benefits that employees can actually use, and that will improve their health in the long-term. For example, Gravie’s innovative health plan, Comfort, is helping employers achieve this with an impressive list of no-cost services, while staying on par with or lower than the cost of most traditional health plans.

More robust, non-traditional coverage: There is a growing shift in thinking about health benefits happening right now. Whereas past generations valued health benefits as a safety net in case of illness or injury, today’s incoming employees are looking for benefits that value wellbeing, holistic health and preventative care. Younger generations, especially, are impressed by non-traditional health benefits that go beyond what’s typically covered. For example, research by WebMD found that Gen Z and Millennial employees are generally three to five times more likely to make use of well-being programs than GenXers or boomers. From chiropractic to specialty care, and mental health to online care, employees want a wider range of services covered by their plan, with holistic health in mind. Does your benefits plan include both traditional and non-traditional coverage, and are you highlighting the non-traditional aspects in conversations with prospective Gen Z and Millennial hires?

New financing options: Buy now, pay later solutions are sweeping retail industries and offering a zero-interest way for consumers to pay for their goods and services over time. An IBIS World report predicts that the buy now, pay later industry will continue to grow at 9.8% annually over the next five years, and ultimately will exceed $1 billion. These payment methods are especially popular among younger generations, and this same flexibility will be an increasingly popular solution within the health benefits space as these options enter the market. An example of what this looks like is Gravie Pay, which gives members convenient access to a financing solution through their member portal that will allow them to pay for out-of-pocket expenses at their own pace.

Simple and modern, user-first experiences: Today’s consumers want health plans that are straightforward and easy to use, while maintaining high standards when it comes to the user experience. While health insurance can be complex and confusing, employees’ expectations for a better experience from start to finish are catching up. Employers are increasingly looking for partners who will smooth out the entire experience – from navigating enrollment to bills, explanation of benefits (EOB), in-network doctors, online care options and more. Partners that offer superior customer service and helpful, modern tools to make benefits an easier and more pleasant experience will stand out in 2022.

The good news is you don’t have to wait until 2022 to embrace these health benefit trends – and in today’s tight labor market, you shouldn’t.

Health benefit solutions need to be designed with employers and employees needs in mind – to help control costs, without reducing coverage, raising deductibles, or compromising value for employees, and providing better experiences for all. Now is the time for employers to be proactive and start having these conversations with company leadership, and their insurance brokers.