Business Solutions
Steadily rising costs of benefits and claims are driving changes in how businesses select a provider and deliver benefits to their employees.
Maintaining competitiveness
• The top resources employees want during benefits enrollment include access to benefits provider websites, HR representatives and benefits advisors.
• According to employees, the most important benefits options are major medical/health, dental, hospital, life, vision and accident insurance.
Supplemental Benefits
Supplemental benefits that directly address employees’ anxieties about the future also are compelling.
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More than half of all employees are interested in supplemental policies for specific diseases or conditions with a hereditary component.
More than half of all employees express a high degree of interest in purchasing supplemental health insurance that covers serious illnesses or conditions — such as cancer, heart attack or stroke.
Health care costs
•38% couldn’t go more than three weeks without a paycheck, and 19% couldn’t go more than a week.
• Nearly 1 in 5 employees say they or a close family member experienced a serious health event or accident in the past year, and 86% of those experienced unexpected medical expenses, such as hospital bills, doctors’ bills and prescription costs.
Rising costs
• Nearly half of employers that offer benefits say rising health insurance costs are hindering their company’s ability to offer bonuses (49%) and a more diverse range of benefits (48%).
• High-deductible health plans are on an upward trend, jumping from 45% of employers having such plans in 2022 to 56% in 2023.
Productivity and morale
•73% of employees say their benefits packages are extremely or very important to their financial health.
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•Employees who understand the total annual cost of their health care coverage more often say they are extremely or very satisfied with their current benefits (78%) — a difference of 53 percentage points from those who understand their costs not very or not at all well.
Attracting and maintaining talent
In 2023, employees say increasing pay is one thing their employers can do to keep them in their jobs, followed by improving their benefits.
75% rank pay and nearly half (45%) rank health benefits among the top three factors when looking for a new job.
80% of organizations offering supplemental insurance report these policies help with recruitment, while 82% report that the policies help with retaining employees.