According to research by the Employee Benefit Research Institute, less workers reported increases in their total health care costs in 2015. EBRI’s survey showed that about 50 percent of workers reported increases in health care costs over the past year. This number was down from nearly 60 percent the year before. Researchers said that high health care costs were the reason for financial difficulties among many workers, and changing costs also affected their use of available health care services.
Workers who said they experienced increases in costs also reported changing how they used the health care system. About 70 percent of workers said that the cost increases led to them making smarter choices about how they cared for themselves. About 50 percent reported using generic drugs whenever possible. Another 50 percent reported going to the doctor only for more serious issues or symptoms, and approximately 40 percent admitted to delaying doctor visits. Of those surveyed who experienced cost increases, more than 20 percent reported decreasing their retirement plan contributions. Another 40 percent reported decreasing contributions to other types of savings accounts.
About 25 percent of the survey respondents reported difficulties in paying for necessities such as housing, food, heat and similar expenses. More than 30 percent had difficulty paying other types of bills such as credit cards, medical bills and similar accounts. Nearly 25 percent reported using up the majority of their savings or all of it, and about the same amount had increased their total amount of credit card debt. Nearly 15 percent reported having to borrow money, and about 30 percent said they had to delay their plans for retiring. Another 15 percent reported dropping other types of insurance benefits, and about 10 percent of respondents had to use loan money or a withdrawal from a retirement savings vehicle to come up with money needed for living expenses.
Earlier versions of this same survey found a consistent opinion among participants that the U.S. health care system was considered poor in quality. Only a fractional amount of participants rated it as very good or excellent. However, workers’ opinions of their health insurance plans continued to be favorable overall. About 50 percent of participants with health insurance coverage reported being very satisfied or extremely satisfied with their plans. Approximately 40 percent were somewhat satisfied, and less than 10 percent were unsatisfied with their health plans.
These are important findings for employers to consider. Paying attention to what employees think of a health plan is the key to offering the best possible benefits for an affordable amount. As every employer knows, good benefits are essential for attracting and keeping good talent. To learn more about adding or modifying health insurance options, discuss concerns with an agent.
Catherine oversees UBF's daily operations and client retention strategy. She has a background in mathematics, economics, and human resources. In her spare time, she enjoys spending time with her family, taking the dog on long walks, and caring for a small and unfruitful garden.