Multiple studies affirm that millions of Americans are underinsured or completely uninsured. These grim results include the 54% of the population covered by employer health plans. While outrageous healthcare and premium costs are part of the problem, it’s clear employers need to step up and do better.
Too Little for Too Many
A Commonwealth Fund biennial survey assesses that 43% of working adults can be considered functionally uninsured because of high plan costs, inadequate coverage, and unreasonably high deductibles. That assessment drops to 29% for those with employer-sponsored health plans, but even that’s too much.
A 2022 Jobcase report states that low and stagnant wages prevent employees from meeting their basic needs. Ironically, the healthcare industry has the highest percentage of workers in this situation. Talk about a double whammy!
Additionally, many employees have “limited or antiquated benefits” packages that don’t provide basic medical insurance or adequate sick days, paid family leave, or retirement support. Even more discouraging is the lack of access to mental health care, which is desperately needed as Americans grapple with the lingering effects of the COVID pandemic.
Without adequate financial and healthcare support, is it any wonder so many people can be quickly crushed by medical debt?
Employers Can (and Should) Do More
According to the Jobcase report, “Today’s workers are facing many uncertainties – economic, political, and personal – and they are looking to their employers to provide some stability through sufficient pay, supportive benefits, and strong leadership that recognizes and rewards its workforce.”
In the ongoing war for talent, companies need to meet the needs and expectations of job seekers. This is especially true with more than half of all Americans relying on an employer-sponsored health plan, and 46% of workers considering good healthcare benefits a key indicator of a good employer.
How Would You Spend 30% Savings on Healthcare?
Legacy medical and pharmacy benefit plans won’t satisfy this demand. Brokers and employers are best served with a next-generation health plan that increases disposable income and improves member benefits, including significantly better access to mental health care, and reduces employer healthcare costs by 30%.
Reducing overspend to this degree liberates organizations and allows them to invest in critical benefits that make them desirable, competitive employers. This includes better pay and more personal time off, and expanding benefits to include the services listed in the previous chart.
The authors of the Jobcase report share our optimism for the future of employer-sponsored health plans when they conclude, “The good news is that businesses and workers both benefit when workers can get ahead. The data indicates that employers have the potential to reap financial rewards, including decreased cost on recruitment, increased value in their bottom line, and improved employee retention.”