COLUMBUS, Ga., Nov. 19, 2019 /PRNewswire/ -- American
workers are stressed about understanding what health insurance they
need and enrolling for benefits. They also are less satisfied with
their overall benefits packages but factor family history into
health insurance decisions. These are key findings from the
2019 Aflac WorkForces Report, a
national online survey of 1,200 benefits decision-makers and 2,000
employees across the U.S., released today by Aflac, the leader
in supplemental insurance sales at U.S. worksites.
"After many signs of optimism last year, including record highs
in employees' benefits and job satisfaction, the 2019 Aflac
WorkForces Report found that American workers largely are stressed
about critical health insurance decisions and less satisfied with
their benefits offerings," said Matthew
Owenby, senior vice president, chief human resources officer
at Aflac. "Given the high importance both employees and employers
place on benefits, we feel the report's findings offer valuable
insights to understanding the most pressing issues and the unmet
needs that can be addressed."
Employee Stress High, Especially for Millennials and Gen
Z
According to the Aflac study, nearly 6 out of 10 (58%) employees
say understanding what insurance or benefits they need is somewhat
or very stressful, with levels even higher for Gen Z (68%) and
millennials (64%). In addition, more than 6 in 10 (62%) say
negotiating medical billing is somewhat or very stressful. These
figures increase with generations, with 66% of millennials and 63%
for Gen Z finding that medical billing is stressful, compared to
59% for those 39 and older. Finally, 43% of all employees say
enrolling in health insurance is somewhat or very stressful;
percentages that increase to 51% for millennials and 55% for Gen
Z.
Benefits Satisfaction Declines
A strong connection exists between benefits and happy workers,
with more than 8 in 10 (83%) employers that offer benefits agreeing
that their company's benefits offerings increase employee
satisfaction. However, a year after reaching a high (61%)
since the initial Aflac WorkForces Report released in 2011,
benefits satisfaction has declined to 52% among workers. The same
percentage of employees surveyed would be at least somewhat likely
to accept a job with lower compensation but a more robust benefits
package. More than 6 in 10 (61%) American workers are
extremely or very satisfied in their jobs, down from 65% in 2018.
Additionally, one quarter of employees report having left a job or
turning down a job offer due to the benefits offered, similar to
25% in 2018.
Family History Matters
The new finding from the Aflac survey reveals the importance
family history plays in workers' health insurance decisions. Almost
three-quarters (73%) of employees, including 80% of millennials and
75% of Gen Z, said their family history is somewhat to extremely
influential in guiding their health insurance decisions. In
addition, 84% would be likely to purchase insurance to help cover
costs associated with a serious illness in their family history
(e.g., cancer, heart attack or stroke). This is especially true for
Gen Z (95%) and millennials (89%).
Debate Helping Younger Workers
Another new finding from the Aflac survey conveys the impact
that the national debate on health care has had in affecting
workers' approaches to health care benefits decisions. While
moderately more employees (38%) said the ongoing national debate
about health care has helped them to better understand their health
care options—compared with 24% who said it has made them more
confused about choices—these figures increase significantly for
younger generations. In fact, 78% of Gen Z and almost half (49%) of
millennials said the debate has
helped them better understand options.
Knowledge and Confidence Wane
Demonstrating slight setbacks compared to 2018, less than half
of workers (46%) have a solid understanding of their total annual
cost for health care coverage and care, compared to 50% in 2018.
Also, more than one-third (35%) surveyed have a full understanding
of their health insurance policy, according to the Aflac study,
down from 39% in 2018. More than 1 in 5 (22%) did not feel
confident they understood everything they signed up for after their
most recent benefits enrollment, up from 19% in 2018.
Similar to past years, an evaluation of employees' benefits
enrollment patterns provides likely explanations behind
shortcomings in understanding health care insurance. For example,
the vast majority (93%) of employees still choose the same benefits
each year. And more than half (56%) of employees surveyed spent
less than 30 minutes researching their benefits options during the
last open enrollment, including 14% who didn't do any research at
all. Finally, more than half of workers (54%) would rather be
subjected to some form of discomfort such as bungee jumping off a
bridge or singing the national anthem at a sporting event than
research their open enrollment benefits. These feelings are highest
among younger workers, including 84% of Gen Z and 66% of
millennials who would choose some discomfort rather than research
open enrollment benefits.
"Adequate information remains the leading unmet need employees
cite to being confident about their benefits selections, followed
by more money and more help," said Owenby. "Understanding the
continued trends of workers choosing the same benefits year after
year and spending less than 30 minutes researching benefits
options, employers need to continue simplifying information across
channels and offering resources for one-on-one assistance."
Financial Preparation Better, Still Daunting
Given the importance of benefits decisions, an uninformed choice
now could affect a worker's financial well-being in the year ahead,
leading possibly to more serious implications like draining a
savings account or 401(k) to pay deductibles and other uncovered
costs. Despite progress compared to 2018, still more than half
(52%) of workers would not be able to cover unexpected
out-of-pocket medical costs of $1,000
or more, and almost one-third (29%) would not be able to cover an
unexpected out-of-pocket medical bill greater than $500.
Rising Medical Costs Drive Need for Supplemental
Insurance
The Aflac study shows more high-deductible plans being offered
to employees, requiring those employees to increasingly take on
more of the cost-sharing ratio for health insurance. However,
almost three-quarters (74%) of employers believe their employees
have enough options available to help them meet their health care
financial obligations, up from 68% last year. With many aware of
their financial challenges, a strong majority of employees (85%)
also see a growing need for supplemental insurance benefits, a
sentiment that has grown significantly and is up from 63% in 2014.
In addition to helping workers cover the costs that health
insurance may not cover, supplemental coverage can help reduce
financial risk. The Aflac study found that nearly one-third (32%)
of employers who offer benefits report offering supplemental
insurance benefits to employees, up from 24% last year.
To learn more about the 2019 Aflac WorkForces Report, visit
AflacWorkForcesReport.com.
About the 2019 Aflac WorkForces Report
The 2019 Aflac WorkForces Report is the ninth annual study
examining benefits trends and attitudes. The surveys, conducted by
Kantar, captured responses from 1,200 employers and 2,000 employees
across the United States in
various industries.
Kantar conducted the employer survey online in the United States between Sept. 25 and Oct. 12, 2019, among
employers at companies with at least three employees. Results were
weighted to enable year-over-year trending. No estimates of
theoretical sampling error can be calculated; a full methodology is
available.
Kantar conducted the employee survey online in the United States between Sept. 27 and Oct. 17, 2019, among adults
age 18 and older who are employed full or part time at a company
with three or more employees. A small sample of employees at very
small companies (with one or two employees) were surveyed in 2019
to better understand this demographic. Results were weighted to
match U.S. demographics. No estimates of theoretical sampling error
can be calculated; a full methodology is available.
Aflac and Kantar are members of the Insights Association
governed by The Insights Association Code of Standards and Ethics
for Marketing Research and Data Analytics.
Results were weighted to match U.S. demographics. No estimates
of theoretical sampling error can be calculated; a full methodology
is available. For complete survey methodology, please contact
Darcy Brito at dbrito@aflac.com or
706.320.2358.
About Aflac
Aflac Incorporated (NYSE: AFL) is a Fortune 500 company helping
provide protection to more than 50 million people through its
subsidiaries in Japan and the
U.S., where it is a leading supplemental insurer, by paying cash
fast when policyholders get sick or injured. For more than six
decades, insurance policies of Aflac Incorporated's subsidiaries
have given policyholders the opportunity to focus on recovery, not
financial stress. Aflac Life Insurance Japan is the leading
provider of medical and cancer insurance in Japan, where it insures 1 in 4 households.
Through its trailblazing One Day PaySM initiative in
the United States, for eligible
claims, Aflac can process, approve and electronically send funds to
claimants for quick access to cash in just one business day. For 13
consecutive years, Aflac has been recognized by Ethisphere as one
of the World's Most Ethical Companies. In 2018, Fortune magazine
recognized Aflac as one of the 100 Best Companies to Work for in
America for the 20th consecutive year, and in 2019,
Fortune included Aflac on its list of World's Most Admired
Companies for the 18th time. To find out more about One
Day PaySM and learn how to get help with expenses health
insurance doesn't cover, get to know us at Aflac.com.
Aflac herein means American Family Life Assurance Company
of Columbus and American Family Life Assurance Company
of New York. WWHQ | 1932 Wynnton Road | Columbus,
GA 31999.
Media contact – Darcy Brito,
706.320.2358 or dbrito@aflac.com
Analyst and investor contact – David A.
Young, 706.596.3264, 800.235.2667 or dyoung@aflac.com
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