Participants December 21, 2020

Strong Performance Attracts 401(k) Investors Back Into Equities

Their portfolios' exposure to equities is back to pre-pandemic levels.

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With the S&P 500 posting its best November ever, investors resumed trading into equities, according to the Alight Solutions 401(k) Index.

There were nine days in November in which trades went from fixed income into equities—a sharp contrast from October, when there were no such days. By the end of the month, investors had 66.9% of their balances in equities, the highest value since January, before the COVID-19 pandemic hit.

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In November, 401(k) investors traded a mere 0.16% of their starting balances. There were 11 fixed income days, comprising 55% of all trading days, and nine equity days, comprising 45%.

Only three trading days were above normal.

Asset classes with the most trading inflows in November were bond funds, taking in 61% of inflows, valued at $219 million, followed by stable value funds (19%; $66 million) and target-date funds (TDFs) (8%; $28 million).

Asset classes with the most trading outflows in November were company stock (47%; $167 million), large U.S. equity funds (20%; $72 million) and balanced funds (13%; $46 million).

Asset classes with the largest percentage of total balance at the end of November were TDFs (29%; $69.8 billion), large U.S. equity funds (25%; $61.1 billion) and stable value funds (10%; $29.9 billion).

Asset classes with the most contributions in November were TDFs (47%; $479 million), large U.S. equity funds (20%; $204 million) and international equity funds (7%; $72 million).

All indexes gained in November, with all equities reaching doubt-digit returns. U.S. small equities were up 18.4%, international equities were up 13.5% and U.S. large equities gained 11%. U.S. bonds managed a 1% gain.

Products December 21, 2020

New Health Benefit Offering Can Reduce Employer Health Care and Lost Productivity Costs

UBERDOC for Employers makes health care more accessible and can be paid for using a health savings account or medical flexible spending account.

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UBERDOC has introduced UBERDOC for Employers, a benefit offering that makes off-insurance telemedicine and in-person care more accessible and affordable for employees.

UBERDOC provides employees priority access to specialists they can pay using their health savings account (HSA) or medical flexible spending account (FSA), thereby reducing the employer’s health insurance costs and increasing access to care for employees. With a network of more than 3,000 board-certified doctors, UBERDOC adds more flexibility for employees’ health care options and complements employer benefits packages.

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This new service from UBERDOC can be an additional benefit to health insurance and doesn’t violate employer-insurance network arrangements. While employees are able to use health insurance, UBERDOC provides an additional option that gives employees more choices for prompt care from board-certified doctors.

According to UBERDOC, research shows that it takes more than three weeks, on average, for a patient to see a doctor or a specialist. This doesn’t include the time spent scheduling the appointment or coordinating the referral necessary for a specialist. Employees who are waiting for specialist care also have more than eight times higher use of emergency room and inpatient hospital services in the 30 days prior to their specialist visit. “This type of delayed care can have a range of negative effects, including reduced workplace productivity in the short-term and increased health care costs in the long run. These delays are indicative of the rising need for easier access to specialized care,” the company says.

When employees can access the specialist who has the best expertise, their conditions end up being treated more quickly and efficiently. UBERDOC notes that this helps employers control costs and strengthen their investment in employee health and productivity. An Integrated Benefits Institute study found illness-related productivity loss costs U.S. employers $530 billion annually.

“I firmly believe that a patient has a right to choose what is best for them or their family, and UBERDOC for Employers provides that additional option for employees who don’t want to be limited to doctors who are only in-network for their insurance,” says Dr. Paula Muto, CEO and founder of UBERDOC.

More information can be found at https://uber-docs.com/for-employers/.

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