INSURICA Employee Benefits Insights

On October 18, the IRS announced that the annual contribution limit in 2023 for health flexible spending accounts (health FSAs) will be increased to $3,050 — double the $100 increase from 2021 to 2022. The maximum carryover amount is also rising. If an employer’s plan allows unused health FSA amounts to be carried over to the following year, the amount will now be $610.

According to professional services firm Aon, the average cost of healthcare for their own employees will increase by 6.5% next year. This is a significant increase from the 3.7% uptick seen in 2022. This cost increases similar to other cost increases mentioned here and likely due to the increased willingness of Americans to go in-person for testing and treatment now that the pandemic has subsided.

As inflation continues to impact the economy, many employers are trying to help employees with their finances by developing inflation-resistant benefit packages. Offering student loan repayment programs helps employees pay down debt and improve their financial security. This benefit is especially appealing to younger workers whose salaries may not keep up with inflation.

Stressors in the workplace can have a profound impact on mental health. The Deloitte Mental Health 2022 Report revealed that more than 80% of respondents experienced at least one adverse symptom. While these figures are alarming, business organizations have stepped up to provide employees with the support they need. Seven in 10 workers believe their employer is more concerned about employee mental health now than in the past, according to the results of APA’s 2022 Work and Well-being Survey.

Burnout is a real issue for many employees today. According to the 2022 Deloitte Mental Health Report, 55% of employees reported experiencing burnout, which is not good news for employers. In addition, Mercer’s 2022 Inside Employees’ Minds study revealed that burnout due to a demanding workload is one of the top factors for employees considering leaving their job.