Survey: Many Americans with Employer-Sponsored Health Insurance, Especially Millennials, Struggling with Rising Out-of-Pocket...
17 Juli 2017 - 04:43PM
Business Wire
Less than half of employees are aware of supplemental group
insurance benefits designed to help them manage the unexpected
expenses of an injury or illness, survey finds
With deductibles continuing to climb, many Americans who have
health insurance through their employers, particularly younger
workers, are struggling when it comes to out-of-pocket medical
expenses.
According to a new survey from Securian Financial Group, a
provider of supplemental group insurance products, nearly four in
10 workers on employer-sponsored health plans are personally
experiencing or know someone who is having financial difficulty due
to medical bills. Notably, more than half (52 percent) of
Millennials on a health plan through their employer are personally
struggling or know someone who is struggling to pay medical
bills.
While solutions for combating unexpected medical expenses are
available, most workers do not know about them. The survey found
that fewer than half of Americans with health insurance through
work (44 percent) are aware that many employers provide
supplemental group insurance options to help employees pay for
out-of-pocket expenses and other costs associated with an
accidental injury, hospital stay or critical illness.
“The rising cost of health care has driven many employers to
offer supplemental group insurance products, often in conjunction
with a Health Savings Account,” said Elias Vogen, a director with
Securian. “This combination can be cost-effective for both employer
and employee, and our survey shows that when employees are aware
that these benefits are available to them through work they opt in
at a high rate—64 percent for accident insurance, 59 percent for
hospital indemnity insurance and 47 percent for critical illness
insurance.”
A unique kind of coverageBenefit payouts for supplemental
group insurance—often referred to as “voluntary benefits” because
employees typically pay the full cost of premiums but at a
discounted group rate—are provided in a lump sum to help cover a
range of expenses, not just out-of-pocket medical bills. This
relieves a key concern for employees: While the survey revealed
that paying for out-of-pocket medical expenses would be the top
financial concern for a plurality (42 percent) of workers facing a
debilitating injury, a critical illness diagnosis or a
hospitalization, 58 percent say their top concern would be lost
wages from work, the ability to pay for regular monthly expenses
such as groceries, or the need to take on additional expenses such
as lawn care or cleaning.
“If you break your leg, or your critically ill spouse needs
specialized medical care out of state, these benefits can be used
to help pay for expenses like hiring out your household chores,
paying for travel costs, extra child care and more,” said Vogen.
“You don’t have to turn in your receipts; you’re able to use the
funds as you wish. The flexible nature of these benefits can be
instrumental in warding off financial troubles from an unexpected
health event.”
The toll of out-of-pocket medical expensesAccording to
the survey, 28 percent of employees with health insurance through
work facing an out-of-pocket expense of $5,000 or more would use
their personal savings to pay rather than other means, including a
Health Savings Account (8 percent) or supplemental group insurance
(7 percent). However, a majority of respondents said they do not
know how they would pay (21 percent), or that they would need to
rely on credit cards (12 percent), a loan from their 401k (7
percent) or family/friends (4 percent), their tax return (5
percent), or by selling/pawning a personal possession (2 percent).
Four percent said they would not pay at all. Other survey findings
include:
- Over the past year, Millennials (32
percent) on employer-sponsored health plans with deductibles are
the most likely age group to have paid out-of-pocket expenses for
an accidental injury like a broken bone or laceration when compared
to Generation X (18 percent) and Baby Boomers (16 percent).
- Among low-income Americans (household
income of $35,000 or less) with health insurance through work, 55
percent report knowing someone or personally having financial
difficulty due to medical bills.
- Across all generations, 31 percent of
workers with employer-sponsored health insurance report having paid
or knowing a family member who has paid an unexpected out-of-pocket
medical expense in the past five years due to a critical illness
such as cancer, a heart attack or stroke.
“Employers recognize that health care costs have become
burdensome to their workers and their families, and it’s important
to remember that these cost increases have impacted employers’
bottom lines as well,” said Terry Holloway, an employee benefits
advisor and executive vice president with insurance broker Cobbs
Allen. “Supplemental group insurance benefits are a cost-effective
solution for both employers and employees. We have seen a
significant increase in employer interest in these and other
voluntary benefit platforms in the past five years, along with
innovative enrollment solutions from insurance carriers.”
Securian’s survey was conducted online by KRC Research from June
8 to June 12, 2017. A total of 1,010 survey respondents answered an
initial screener question on the source of their health insurance.
The rest of the survey was answered by a base of 573 respondents
who participate in a health insurance plan provided by their
employer or their spouse’s employer. The sample was weighted by
demographics such as age, gender, race, region and income to ensure
reliable and accurate representation of the national population age
18 and older.
Related Links:Supplemental Group Insurance FactsheetSecurian
Supplemental Group Insurance BenefitsSecurian Benefits Survey
Report
About Securian Financial GroupSince 1880, Securian
Financial Group and its affiliates have provided financial
security for individuals and businesses in the form of insurance,
investments and retirement plans. Now one of the nation’s largest
financial services providers, Securian is the holding company
parent of a group of companies that offer a broad range of
financial services.
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Securian Financial GroupJeff Bakken, 651-665-7558Media
Relationsjeff.bakken@securian.com