COMP NEWS – A recent survey that was performed by Mercer and commissioned by RESOLVE: The National Infertility Association found that employers who offer fertility benefits often do so as a means of retaining top talent. The survey asked 459 employers about their level of coverage regarding infertility coverage and benefits and found that 254 of the employers offer some degree of coverage.
About a third (32%) of small employers, those with 50-499 employees, cover some type of infertility service, compared with 61% of large employers, those with 500 or more employees.
Furthermore, the survey posed the question of why the employers that offer coverage choose to do so.
The three reasons for covering infertility treatment cited by the most respondents (about 50% for each) were to “ensure employees have access to quality, cost-effective care,” “stay competitive to recruit and retain top talent,” and “be recognized as a “family friendly” employer.”
Next, these companies were asked how they thought offering infertility coverage helped them achieve the positive outcomes that they were seeking.
At the top of the list of outcomes was “ensuring access to quality, cost-effective care” – 71% report that their infertility benefits have achieved this outcome to a significant or moderate extent. Second was “satisfying employee requests,” cited by 64% of respondents.
In addition, 62% of respondents said that it helped them in “staying competitive and attracting and retaining talent.”
Those that do not offer any coverage cited “concerns about potential increased costs” as their number one reason.
Over half (55 percent) do not offer coverage because of “concerns about potential increased costs.” Larger employers are more likely to cite cost as a barrier than smaller employers: 60% of those with 500 or more employees, compared with 47% of those with 10-499 employees.
When asked if they were considering adding coverage, 21% of large employers responded that they were “considering offering at least some coverage for infertility.” Furthermore, many employers said that they would be more likely to offer coverage if they knew the costs would be offset by savings in healthcare expenses elsewhere.
Nearly half of respondents (47%) said that if they knew the cost of covering infertility treatment would be offset by savings from eliminating other medical plan costs, such as multiple births, they would be more likely to provide coverage.
For more Comp News, see our recent posts.
Comp News is brought to you by CompXL, the flexible compensation software provider that enables mid- to large-size organizations to implement competitive pay structures such as long-term incentive plans and multi-factor bonuses.