Employees Place High Value On Workplace Health Care Benefits As Costs Escalate
Amid growing concerns about the rising cost of health care and the potential barriers to obtaining insurance coverage, workers with access to employment-based health plans appear to value medical benefits above the actual dollar amount that employers contribute to the plans, an annual survey on health confidence conducted by the Employee Benefit Research Institute (EBRI) revealed.
The survey of 1,000 Americans ages 21 and older showed that, of those respondents with employer-provided health care benefits, 76% would choose $7,500 in employer-provided health benefits over an additional $7,500 in taxable income. When the respondents who told researchers they preferred health benefits to additional income were asked how much taxable income they would need to be offered before they would be willing to give up coverage, the median response was $12,000.
Of those survey participants who currently have employer-provided coverage, 54% said they are not confident that they would be able to obtain insurance coverage if their employer stopped offering a health plan, but instead gave them the money the company currently contributes to the workplace plan to purchase their own insurance policy on the individual market.
When asked if they would wish to continue to receive their current level of health insurance coverage from their employer, even if a portion of the premium were taxed, 62% of respondents with employment-based insurance said they would choose no cut in benefits, while 27% of this group indicated they would prefer to reduce the level of coverage.
Among all the adults surveyed, 91% expressed support for a legal mandate that all larger employers provide and contribute to health care benefits for employees. Some 42% of respondents said they believe that all employers, regardless of size, should sponsor and contribute to an insurance plan. An additional 18% of respondents said they support requiring employers with 30 or more workers to provide health benefits, 12% agreed that employers with at least 50 workers should be required to sponsor a plan, and 10% indicated they support a mandate that all companies with at least 100 workers provide coverage.
Results of the survey further showed that 63% of respondents with health care coverage experienced an increase in the size of their insurance contributions over the past year. Of those respondents who have seen their health care costs rise, 81% said that increased costs have motivated them to take better care of themselves, 78% said they choose generic drugs more often, 66% reported talking to their doctors more carefully about treatment options and costs, 64% indicated they go to the doctor only for treatment of more serious conditions or symptoms, 50% reported delaying visits to the doctor, and 28% said they have not filled prescription medications or skipped doses of prescription medications.
When asked for their views on the costs associated with health insurance, 18% of the adults surveyed indicated they are very or extremely satisfied with the costs, 28% said they are somewhat satisfied with the costs, and 48% said they are dissatisfied with the costs. When asked whether they believe the American health care system should be reformed, 47% agreed that some major changes are needed, 24% said only minor changes are required, another 24% told researchers the system should be completely overhauled, and just 3% said no changes are needed.
“These results show the impact of rising health care costs is widespread and growing,” said Dallas Salisbury, EBRI president. “Previous surveys showed rising health care costs were affecting the household finances of many Americans. This year we learned that costs also are influencing how much individuals use the healthcare system, even to the point of delaying care when that could be harmful. Thus, it should be no surprise that the overwhelming majority of Americans are not satisfied with the costs of health insurance.”
