Two paths forward for employer-sponsored insurance

The economic crisis brought on by Covid-19 is severe. Employers have taken drastic actions to manage staffing costs as revenue crashed and entire industries were rendered dormant. In the next 12 to 24 months, furloughs are likely morph into layoffs, and health benefits are a sure target.

The last recession in 2008 led to massive changes in benefits, transferring more costs to employees. But this time will be different. The scale of today’s challenge, coupled with the lessons of the past decade’s experience with high deductibles, means that cost sharing won’t be enough. Rather, we expect to see employers debate between limiting the network options for members and asking PCPs to make those decisions for them.