How the pandemic transformed health care and changed employer benefits

The most immediate disruption involved visits to hospitals and primary care providers. As viral infections multiplied and COVID-19 patients were hospitalized, shortages of critical resources, such as personal protective equipment (PPE), ventilators and hospital beds emerged.

Across the country, state authorities ordered health care providers to delay elective or non-urgent procedures to free up hospital staff and facilities for COVID-19 patients.² Outpatient visits, as well as emergency room visits, dropped sharply.³ There was also a drop-off in in-person patient visits to primary care and specialist facilities: A May 2020 poll found that nearly half of Americans — 42% — had skipped or deferred medical treatment.⁴

Out of necessity, many of these practices rapidly adopted or expanded telehealth services to help provide patients with remote care. In a matter of months, as more and more states changed laws or policies to promote telehealth and remote care services, virtual appointments and home based care delivery had moved to the mainstream across the country.

Another impact involved mental health challenges. The pandemic as the prolonged periods of isolation, loneliness and stress took a toll on people's well-being.⁵ With many people socially isolated, fearful of infection, grieving the loss of loved ones and/or financially insecure, rates of anxiety and depression rose 25% globally during the first year of the pandemic.⁵

During the height of the pandemic, thousands of health care workers were putting their lives at risk, with many contracting the virus themselves, which quickly created shortages of health care workers.⁶ As a result, burnout rates and resignations soared.⁷

But it wasn't just the toll of working long hours amid staff shortages, it was also the emotional toll and trauma caused by witnessing countless people suffer, die and grievef as their loved ones lost their lives to this virus. In response, many provider organizations adopted or strengthened practices (such as flexible scheduling) to bolster the well-being of health care workers.¹

While the COVID-19 public health emergency is over now, many of the changes caused by the pandemic are here to stay:

During the pandemic, the shift to grocery delivery services became widespread as stay-at-home orders and health concerns drove people to seek safer, more convenient alternatives. Similarly, consumers’ expectations for innovation across various sectors grew. In health care, for instance, the demand for virtual care surged, leading to significant advancements in telemedicine. While telehealth usage has declined from its pandemic peak, demand for virtual appointments among primary care and especially behavioral health patients remains much higher than before the pandemic.⁸ And there have even been regulatory changes allowing for reimbursement of telehealth care.⁹

The pandemic's emphasis on convenience also spurred the development and adoption of numerous digital tools, transforming how consumers interact with essential services. As in-person visits became risky and often impractical, there was a surge in the demand for digital health care innovations to step up.

For instance, health monitoring apps and wearable devices gained popularity, enabling individuals to track their health metrics and symptoms. This data could be shared with health care professionals, facilitating more personalized and timely care. Digital prescription services and online pharmacies also saw increased usage,¹⁰ making it easier for patients to manage their medications without leaving their homes.

The pandemic also spurred the development and expansion of services like online appointment scheduling and digital solutions that support condition management, with the goal of streamlining administrative processes and reducing physical contact. These innovations not only enhanced patient convenience but also improved the efficiency and effectiveness of health care delivery, setting new standards for the industry.¹¹

While many recall 2020 as the onset of a growing national mental health crisis, it also became an opportunity to reduce stigma around mental health issues. Years later, the utilization of mental health services has not returned to pre-pandemic levels; instead, it has established a new, higher baseline.

Take a look:

• Before: Anxiety affected 6% of survey respondents and depression affected 7% of survey respondents in 2019¹²
• During: Depression and anxiety affected 2 in 5 U.S. adults during the pandemic¹³
• After: 1 in 5 Americans live with mental illness¹⁴

As a result, employers have responded by strengthening their coverage of mental health care and expanding their behavioral health benefits.¹⁵ And while these trends are a positive sign that people are prioritizing their mental well-being, it also presents new challenges, including increased stress on the health care system and potentially higher costs for both providers and employers. Addressing these challenges will be crucial to ensuring sustainable and accessible mental health care for all.

“What we’ve seen coming out of the pandemic is that more individuals than ever are seeking and obtaining the behavioral health services they need,” says Trevor Porath, vice president of behavioral health solutions for UnitedHealthcare Employer & Individual. “That is clearly a good thing, and a reflection of the accelerated digital transformation of health care we’ve seen in the country in recent years.”

Following the pandemic, many employers kept remote and hybrid work policies in place. While the tides seem to be turning with more and more employers mandating a “return to office” in the hopes of greater productivity,¹⁶ over 95% of employees want some sort of work from home option, including 54% wanting to work remotely full- time and 41% wanting to work a hybrid schedule.¹⁷

These flexible work arrangements offered employees greater work-life balance and more time to spend with their families and focus on their family health and well-being. Consequently, more employers have embraced a more personalized and customizable approach to their benefits strategy, including expanded parental leave policies¹⁸ and benefits that support areas of health and well-being that were perhaps overlooked in the past.

“We’re seeing more employers looking to meet their employees where they are, in terms of benefit needs,” says Craig Kurtzweil, chief data & analytics officer for UnitedHealthcare Employer & Individual. “That may involve a larger menu of overall offerings, but the investments are worth it in terms of overall employee well-being, productivity and retention.”