2021 US Benefits Trend Report Highlights 1 Empowering

2021 US Benefits Trend Report Highlights 1

Empowering Employers, Enhancing Outcomes We strive to be the partner our clients need to overcome employee benefit challenges and enhance outcomes. Addressing problems requires understanding current trends, listening to employer objectives and creating solutions that are meaningful to employees. 2

A Look at the Numbers 154% Increase in telehealth visits during the last week of March 2020 (vs. the same period in 2019) 1/3+ More than one-third of Americans have displayed clinical signs of anxiety, depression, or both since the pandemic began 80% Percentage of employers investing more in mental health and in financial well-being 70% Percentage of employees who somewhat or strongly agreed that flexible work arrangements are as important as pay or health benefits 60% Less than 60% of Americans have enough savings to cover an unexpected $1, 000 expense over 50% For the first time ever, more than half of pharmacy spend was on specialty drugs 3

What’s Trending – Our Take Cost Containment Compliance Healthcare spending declined in 2020 (but that likely won’t continue). A flood of regulation/legislation is making compliance even more complex. Well-Being HR Solutions Investing in well-being is a business imperative, but you also need a strategy. “Just keeping up” – from leave policy to OSHA requirements – isn’t a sustainable strategy. 4

What’s Trending – Our Take Voluntary Benefits Providing a wider array of benefits enhances loyalty, productivity and well-being. 010 101 010 Digital Transformation Focus on solving problems, enhancing the employee experience and learning from the data. Rx Healthcare Delivery Prescription drug spending – driven largely by specialty costs – is (still) skyrocketing. Options – including telemedicine – have to be driven by patient needs and provider comfort. 5

Responding to the Trends In the wake of the global pandemic, organizations have an opportunity to advance their position as an employer of choice by investing in solutions that support their employees, reduce cost, and elevate productivity and loyalty. • • HR solutions that help you be more strategic • A well-being strategy that elevates your company’s mental strength • • Compliance expertise for navigating a dynamic landscape • Diverse and complementary healthcare delivery options Supplemental health and lifestyle benefits that empower employee choice Digital resources that enhance efficiency and the employee experience 6

Containing Costs with Strategy and Employee Engagement Annual Median Health Benefits Costs by Plan Type & Coverage Tier, NFP Total health spending in 2020 was 2% less than the 2019 total, the first year-over-year decline since 1960. But don’t expect that trend to continue post-pandemic. Employers that are proactive about cost containment, and engage employees with educational outreach and new solutions, will position themselves for success. Actions that reduce costs without compromising quality, and reflect the needs of employees, create value for the employer and employees. This alignment isn’t easy, but your ability to achieve exceptional results is enhanced when you don’t have to go it alone. We’re here to help. 7

Thank You To access the full US Benefits Trend Report, visit: www. NFP. com 8

Actionable Insights that Drive Results Explore Strategies to Contain Costs Build a Mentally Strong Organization Inform and incentivize better healthcare choices without compromising quality. Prioritize systems and habits that enhance resilience and mental strength. Acknowledge that Employees Have Diverse Needs Proactively Manage Your Rx Spend Embrace Digital Transformation Start by using manufacturer copay cards or replacing hyperinflationary drugs. Aggregate data, inform decisions and enhance the experience for employees. Conduct an Annual Audit of HR Policies and Procedures Accept that Compliance Won’t Get Any Easier Supplemental health and lifestyle benefits empower employees to customize their benefits. Preventing noncompliance and fines requires keeping up with constant change. Engage organizations with robust compliance capabilities. 9