Navigating the Next Generation of Employee Benefits

Connecticut has 74,000 job openings—1.3 openings for every unemployed person. 

And the state’s cost of living—ninth highest in the country—is a significant factor behind those labor challenges.

“It’s really difficult to get people to come into the state or want to stay in the state if they can’t afford to live here,” Mercer Health’s Teresa Bucello [pictured above, right] told the crowd at CBIA’s Feb. 12 Healthcare Summit.

“Healthcare costs, along with child care, energy, and housing, is among the primary drivers of that high cost of living,” added CBIA president and CEO Chris DiPentima.

“Over half the businesses we surveyed last year say they are dissatisfied with the quality and cost of healthcare.”

The Cost Curve

The summit centered around controlling healthcare costs and sharing strategies with employers for providing employees with quality, affordable benefits.

Bucello highlighted the importance of health benefits as a way to bridge the labor shortage. 

Since February 2020, Connecticut’s labor force has declined 1%, in contrast to most of the region and the country. Nationally, the labor force is 2.5% larger than pre-pandemic levels.

“Meeting the needs of our members today means meeting the needs of a very diverse workforce.”

Mercer’s Teresa Bucello

Bucello noted the state also has the third highest aging population in the country, and the supply of workers is not keeping up with demand. 

“Meeting the needs of our members today means meeting the needs of a very diverse workforce,” she said.

“It’s even more incumbent upon employers now—small and mid sized employers—to really take a look and take a step back and understand what we need to do to seek solutions that are going to attract and retain the workforce.”

Pay and Benefits

Mercer surveyed more than 2,500 employees about the top reasons they join and stay with an organization.

While pay is number one, the survey found that healthcare benefits is the number two reason.

The survey also found that 58% of salaried workers and 75% of hourly workers earning minimum wage consider leaving jobs because of insufficient pay. 

CBIA’s 2025 Healthcare Summit brought together industry leaders for important conversations with practical strategies for employers on managing rising #healthcare costs, finding the right #benefits plans, and maximizing employee #engagement. pic.twitter.com/gx77Qff6mh

— CBIA (@CBIANews) February 14, 2025

“As employers are balancing what employees want, at the same time, we’re dealing with high wage requirements and an expectation that benefits are top notch,” Bucello said.

She said that employers are increasingly focusing on benefits that are inclusive, provide choice, recognize disparities in access, and support the diverse needs of their population. 

Employers looking to provide those top notch benefits are running into increasing costs. 

Increasing Costs

Bucello said that healthcare is the number two expense employers have to their payroll. 

According to SunLife’s book of business, healthcare plans increased an average of 7% for small employers in Connecticut in 2024. 

“We’re living in times where costs are continuing to escalate,” Bucello said.

“Employees are relying more and more on their employers to be ahead of the game.”

Bucello

“Ultimately, affordability concerns are driving strategic discussions.

“Employees are relying more and more on their employers to be ahead of the game to help ensure that they have adequate access and that they can afford to access the care when they need to seek it.”

Bucello highlighted ways that employers can become more strategic about controlling their healthcare costs. 

Employer Strategies

That includes using data to drive decisions and understand what’s important for workers, how they’re engaging, and identifying gaps in employee benefits. 

Bucello, and other experts at the summit highlighted the role of technology to make those decisions.

“There’s a balance between using technology and leveraging technology and all the benefits that it has,”  said Privia Health’s Joseph Quaranta during a discussion on employee engagement with SoNE Health’s Lisa Trumble, Upside Health Advisors’ Jeff Hogan, and Robinson + Cole’s Susan Halpin.

“It’s critical to circle back and really keep the employee at the center.”

Bucello

“The fulcrum of that is to allow our providers and other parts of our team to deliver better care, and in many ways, a better experience of care to our patients,” Quaranta said. 

Bucello noted alternative network strategies like variable copay plans, high performance networks, and accountable care organizations as well as the importance of understanding how medications are being covered.

She said that these strategies help employers create designs that “steer employees to high quality, lower cost options.”

Employee Engagement

“As we consider all these different strategies to help control costs, it’s critical to circle back and really keep the employee at the center,” Bucello said. 

Trumble stressed that healthcare is “incredibly personal.”

“In order to get someone engaged in their healthcare, you need to understand where they are, because the needs are varied by individual,” she said.

“You want to have a health plan that is supportive and easy and people appreciate,”

C.M. Smith Agency’s Paul Grady

“It’s constantly being engaged, and then incentivizing people to make the right decisions,” said Goodroot CEO Michael Waterbury during a discussion on managing healthcare costs with C.M. Smith Agency’s Paul Grady and Ken Comeau, who leads CBIA Service Corp, which offers a range of employee benefits.

“Costs aren’t going down, so if you don’t get engaged as an employer and an employee, you know it’s not a great path.”

“You want to have a health plan that is supportive and easy and people appreciate,” added Grady.

Inclusivity, Affordability

Trumble added that understanding healthcare can be difficult, and employers need to help themselves.  

“Find a consultant that’s independent, that can do this work for you, because you need to treat healthcare expenditures as a strategic imperative for your business,” she said. 

Bucello said it’s important for employers to implement strategies that focus on inclusivity and affordability. 

“Leave no stone unturned.”

Bucello

That includes offering employee benefits that matter, finding network strategies that work for them, and balancing economics and empathy. 

“Leave no stone unturned,” she said. “Explore all of your options, but understand the feasibility of implementing them.”

“You don’t want to just throw spaghetti at the wall and see what’s going to stick.”