Benefits enrollment season is rapidly approaching and with new trends and ever-changing regulations, last year’s strategy may not be the best fit for 2020. A comprehensive benefits package is a great tool for recruiting talented workers and keeping them engaged, healthy and productive. However, healthcare costs, potential new regulations and emerging trends may significantly change how employers need to approach their benefits offerings for the new year.

Healthcare Costs

Healthcare cost pressures remain a factor for 2020 due to three main influencers: drug spending, chronic diseases and mental health. Increases in medical costs and healthcare spending are forcing employers to find ways to keep healthcare costs down while still promoting the importance of health and wellness among their employees. 

New Regulations in California on the Horizon

The California Assembly passed a bill to create a statewide individual mandate in response to the elimination of the federal one. If passed, it will require all California residents to purchase health insurance for themselves and their dependents to maintain minimum essential coverage (MEC) and will require employers to take on the task of documenting and may affect enrollment in company-sponsored plans. The bill is currently waiting to be passed by the state Senate, and then will have to be signed by the governor. If passed, it will go into effect for the 2020 benefits year.


By 2020 nearly half of the workforce will be comprised of millennials, and Gen Z are expected to make up another 20% of it. Each generation has their own needs and priorities, but one approach that caters to both is flexibility. Younger workers are drawn to plans that can be customized, or that offer non-traditional options such as gym membership reimbursement, mental health services and financial wellness services. 

Health savings accounts (HSAs) are also seeing a comeback, with employee participation going from 50% in 2017 to 81% in 2018. HSAs are being touted as the most “millennial-friendly benefit” by experts, because they allow younger, healthier workers (and their employers) to save on premiums by selecting high-deductible health plans and using tax-deductible contributions to cover out of pocket medical costs. 

Customization and Compliance are Key

Customization and compliance are key to ensuring that your benefits offerings are innovative and attractive. Partnering with a Professional Employer Organization (PEO) is one way that California business owners can keep up with regulatory changes, trends in the workforce and new technology. Emplicity’s PEO plans are customizable, to allow employers to choose the services that they need so that, in turn, they can give their employees the support and benefits that they need too.

About Emplicity:
Since 1995, Emplicity has provided a smarter, more secure, and integrated platform of employer services to its 300 business clients and their 8,500 employees. As a Professional Employer Organization, or PEO, the California-based HR outsourcing firm simplifies the compliance, administration, and support businesses need in the areas of employee benefits, payroll, and human resources technology.

For more information about us, visit or call us at (877) 476-2339. We’d love to make your employee management more simple—and secure.

NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of its clients.

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