Eight out of 10 U.S. employees are concerned about changes their employers have made to their health, disability or life insurance coverage since the 2008 open enrollment season, and are worried about how they will pay for these changes.
According to a recent nationwide survey commissioned by Colonial Life & Accident Insurance Co., of full-time employed adults reporting changes to their employer-provided insurance coverage, large majorities say they are at least somewhat concerned about:
• Unexpected medical expenses such as emergency room visits and major surgery (86 percent expressed concerns).
• Increased premiums and expenses no longer covered by their plans (83 percent).
• Deductible amounts that were added or increased (81 percent).
• Co-payment amounts that were added or increased (79 percent).
“This year’s troubling economy has forced employers to make some tough decisions in regard to their benefits plans,” says Tom Gilligan, senior vice president of marketing and branding at Colonial Life. “Employees are now justifiably concerned about the effects these changes will have on their paychecks and their financial stability. They’re left to deal with gaps in coverage that leave them feeling vulnerable and exposed.”
Nearly Half Report Changes
Among survey respondents—full-time employed adults who are enrolled in an insurance program provided by their employer or their spouse's employer—49 percent saw changes to their coverage from 2008 to 2009. Among those indicating changes:
• 65 percent report the addition of or an increase in premiums.
• 56 percent report the addition of or an increase in co-pay amounts.
• 48 percent report the addition of or an increase in deductibles.
• 13 percent report elimination of one or more types of coverage (life, health, disability).
“When employers make changes to their benefits plans, as so many are being forced to today, it’s important to clearly communicate these changes to employees,” says Gilligan. “Otherwise, employees are left confused and ill-prepared to make smart benefits decisions. Never before has benefits communication been so important.”
Coverage Concerns
Respondents expressed concern that their insurance providers might not provide adequate coverage:
• 35 percent feel their plans might not adequately cover their inability to earn an income for an extended time due to illness or injury.
• 28 percent feel their plans might not adequately cover a serious illness such as cancer, stroke or heart attack.
• 19 percent feel their plans might not adequately cover an unexpected emergency room visit.
• 19 percent feel their plans might not adequately cover the death of a primary wage earner.
• 13 percent feel their plans might not adequately cover basic medical care, including preventive care.
Interest in Voluntary Benefits
Employees expressed considerable interest in purchasing supplemental coverage and voluntary benefits to help pay for some of the expenses not currently covered by their insurance plans. Among respondents, 78 percent were at least somewhat interested in this type of coverage.
“Employees are more interested in finding a solution to their increasing concerns about insurance coverage and the gaps left by today’s health plans,” says Gilligan. “Personal insurance products—such as disability coverage and life insurance, hospital confinement and critical illness plans—can serve a valuable role by filling these gaps.”
Survey Sample
Of the 1,181 full-time U.S. employees surveyed, 87 percent were enrolled in an employer-provided or a spouse’s insurance plan.
• 84 percent were enrolled in health insurance.
• 64 percent were enrolled in life insurance.
• 42 percent were enrolled in disability insurance.
Stephen Miller is an online editor/manager for SHRM.
Related Articles:
American Workers' Financial Fears Remain High, SHRM Online Benefits Discipline, August 2009
More Turn to Aggressive Health Cost Strategies, SHRM Online Benefits Discipline, July 2009
SHRM 2009 Benefits Survey: Economy Impacted Benefits, SHRM Online Benefits Discipline, June 2009
Benefits Communication—A Tool to Boost Morale, SHRM Online Benefits Discipline, April 2009
Voluntary Benefits & Job Satisfaction, SHRM Research, December 2005
Voluntary Benefits: No Longer on the Fringe, SHRM Online Benefits Discipline, September 2004
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