Employee benefits have always been a cornerstone of workforce well-being, but the definition of what makes a plan effective is changing. Today, it is not enough to offer medical coverage and retirement savings. Social determinants of health, or SDOH, are increasingly recognized as critical factors in shaping health outcomes. These determinants include housing stability, access to nutritious food, transportation, education, and even digital connectivity. For plan administrators and trustees, understanding these influences is essential for designing benefits that truly meet members’ needs.
The numbers tell the story: according to the Centers for Disease Control and Prevention, nearly 59 percent of adults with chronic conditions report at least one adverse social determinant of health, such as food insecurity or cost barriers to care. This means that even the most comprehensive health plan can fall short if it does not address these external factors. When members struggle with housing or transportation, their ability to access care diminishes, leading to higher costs and poorer outcomes. These challenges often result in increased absenteeism and reduced productivity, which ultimately affect the entire organization.
Forward-thinking plans are beginning to integrate SDOH considerations into their design. For example, offering transportation assistance for medical appointments can reduce missed visits and improve adherence to treatment. Partnering with local organizations to provide healthy food options or housing support can make a measurable difference in member health. Mental health programs and preventive care initiatives are also essential, as stress and financial insecurity often correlate with chronic disease. Plans that include wellness incentives, financial counseling, and telehealth options are better positioned to address these issues holistically.
At Amalgamated Employee Benefits Administrators, we understand these challenges and help plans incorporate strategies that go beyond traditional coverage. Our approach includes data-driven insights to identify gaps and partnerships that connect members to community resources. By doing so, we ensure compliance while delivering benefits that reflect real-life needs. We also work closely with trustees and plan professionals to create solutions that are sustainable and adaptable to changing workforce demographics.
The future of benefits is comprehensive. Addressing social determinants is not just a trend; it is a necessity for improving health equity and reducing disparities. Plans that adapt now will lead the way in creating healthier, more resilient workforces. For trustees and administrators, this is an opportunity to transform benefits from a transactional offering into a strategic tool for workforce well-being. By prioritizing SDOH, organizations can not only improve health outcomes but also strengthen employee engagement and loyalty. In a competitive labor market, these factors can make all the difference.
