The Health Insurance “Knowledge Gap” is Wide and Employees Don’t Know Where to Turn When Selecting Health Insurance Options

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A survey conducted by The Harris Poll and commissioned by Justworks finds that 72% of employed adults who pick their insurance wish someone would tell them which health plan is best for them

NEW YORK, Aug. 4, 2022 /PRNewswire/ — Justworks, the HR software platform for small businesses, today announced the findings of its Health Insurance Knowledge Snapshot. The findings show that employed American adults experience a wide selection of emotions when choosing advantages and that younger employees are less knowledgeable about what their plans cover, a spot that might find yourself costing them.

The survey, conducted by The Harris Poll, shows that many employed Americans misunderstand basic facts about medical health insurance despite high levels of self-reported knowledge. Knowledge gaps amongst US employees may additionally, partly, result in some negative emotions experienced through the enrollment process. With confusion around key terms like deductible, in addition to the workings of Health Savings Accounts “HSAs,” and Flexible Spending Accounts “FSAs,” it’s no surprise that Americans with insurance wish others would help them make their enrollment decisions, and that advantages—or perceptions about them—can play a vital factor as to why employees leave or search for jobs.

The Knowledge Gap

While the vast majority of employed Americans (82%) say they feel that they’re knowledgeable in regards to the medical health insurance enrollment process, including over a 3rd (39%) who feel they’re very knowledgeable, over half (53%) don’t feel they’re getting essentially the most out of the medical health insurance options available to them. An identical proportion (54%) do not know the complete scope of what their current medical health insurance offers them.

“The Health Insurance Knowledge Snapshot shows us that there’s a serious knowledge gap in advantages understanding and an enormous opportunity for education,” said Elizabeth Sklar, Manager, Research & Customer Insights at Justworks. Sklar continued, “With the present market conditions (inflation, the tightening of salaries and potential recession) it’s more essential than ever that employees understand their advantages in order to not miss out on potential cost-savings.”

Younger employed adults (aged 18-34 (67%); aged 35-44 (71%)) usually tend to incorrectly answer or to be unsure about some basic facts about medical health insurance—especially the definition of a deductible; vs. adults aged 45-64 (45-54 41%; 55-64 26%).

Employed American adults are unsure about who to show to in the event that they have questions and repeatedly fall back on choosing the identical insurance every yr, potentially undercutting employers’ efforts to enhance the enrollment experience by adding recent plans or offering coverage at recent price points. Key indicators of this information gap and insecurity are:

  • 72% of employees who’re involved of their medical health insurance decisions say they need someone would tell them what the very best medical health insurance for his or her unique situation is.
  • 44% of employed U.S. adults say they feel uncomfortable asking their HR representative questions on medical health insurance enrollment.
  • 47% say they call their friends or relations for help when enrolling in medical health insurance.
  • 62% of employed Americans who’re involved of their medical health insurance decisions say they do not often change their medical health insurance selections yr over yr since it’s too stressful.
  • Nearly half (49%) feel pressure to pick the most costly medical health insurance option to make sure they’ve the coverage that they need.

Advantages and Worker Retention

Given the present labor market, understanding advantages is at all times essential. Amongst employed Americans, 66% say that they were searching for a recent job, or open to a recent one. In some cases, the consideration of advantages outweighs pay, as 78% of US employees say that having medical health insurance that meets their specific needs is essential to them when searching for a recent job, and 64% say that they might be willing to sacrifice some pay for higher medical health insurance, in the event that they were searching for a recent job. As well as, nearly two-thirds (63%) say that their company’s medical health insurance offerings impact how much they need to keep working there.

“It isn’t nearly what employers are capable of offer, but how their employees experience those offerings,” Sklar said. “If employers can offer preemptive guidance and education to their employees around the best way to select their best profit option, employers will higher help their employees and increase likelihood of talent retention.”

Employees who’re either actively looking or open to a recent job (58%) usually tend to say they do not feel they’re getting essentially the most out of the medical health insurance options available to them in comparison with their peers (44%), highlighting the impact of advantages education and an enrollment experience that ensures employees feel secure and valued.

For the complete findings, click here.

Concerning the Survey

This survey was conducted online inside the USA by The Harris Poll and commissioned by Justworks from June 9-13, 2022 amongst 2,021 U.S. adults ages 18 and older including 1,040 respondents who’re employed either full time or part time. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].

About Justworks

Justworks is a cloud-based software platform that provides small and medium-sized businesses access to advantages, payroll, human resources and compliance support—multi function place. We drive economies of scale via co-employment, enabling attractive cost savings for our customers, and providing them a richer suite of advantages for his or her employees. We imagine we’re the primary provider to mix this powerful demand aggregation dynamic with a straightforward, intuitive user experience and 24/7 expert support—enabling entrepreneurs and businesses to grow with confidence. To learn more, visit Justworks.com, follow us on Twitter @Justworks and Instagram @Justworks_HR.

Media contact:
Ditto PR
[email protected] 

SOURCE Justworks

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