According to MetLife's 11th Annual Study of Employee Benefits Trends, uncertainty around health care reform is not only affecting human resource departments, it's also having a direct impact on employees. Over half of those employees who are very concerned about having access to affordable health insurance, 54%, are also more likely to report stress and distraction at work. Employers can help address workers' concerns and increase productivity by enhancing their benefits program with voluntary supplemental health products, wellness programs and by increasing benefits communications.
The MetLife study found 61% of employees are concerned about having enough money to cover out-of-pocket medical costs that are not covered by health insurance such as premiums, deductibles, co-pays and travel. These concerns are compounded by other financial concerns facing employees: 55% of employees report they worry about meeting their monthly living expenses and three out of four employees who are very worried about meeting out-of-pocket medical expenses don't have a three- month salary saving cushion to tap into.
Voluntary supplemental health benefits continue to play an integral role in employers' benefit offerings. In fact, 58% of employers say providing voluntary benefits is a significant benefits strategy – up dramatically in 2012 from 32% in 2010. These benefits offer a cost-effective solution for employers that can also help to strengthen employees' financial safety net. This is especially important as employees face the burden of increasing out-of-pocket health costs and uncertainty around health care reform. Voluntary supplemental health benefits, such as accident, critical illness, and disability insurance, can help address these issues and reduce employees' stress without increasing the employer's bottom line.
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"Voluntary supplemental health benefits can have positive results on benefits satisfaction and productivity," says Michael Fradkin, senior vice president, Voluntary & Worksite Benefits at MetLife. "Employees who are very satisfied with benefits are nearly five times less likely to worry about unexpected health costs and can be more productive as a result."
Voluntary supplemental health benefits can also have a positive effect on loyalty. Employees who own these products are almost twice as satisfied with their benefits and half of the MetLife survey respondents cite these plans as a reason they remain with their employer. Workers are also willing to bear the costs for these benefits– the study found nearly 60% of employees polled who are very concerned about their benefits being reduced are willing to bear more financial responsibility rather than lose coverage. Fifty-eight percent of employees who fear losing medical insurance at work believe these supplemental plans help manage their health care costs.
Wellness programs can help create a healthier workforce, leading to fewer costly medical interventions, absences and distractions, resulting in more productive employees. These programs continue to grow in popularity with the number of companies with fewer than 500 employees offering wellness programs more than doubling since 2007. The MetLife study shows employee interest in wellness programs, with 57% of workers reporting that they participate in these activities. Complementing these programs with a focus on fostering financial wellness by offering protection products that support financial security—such as life and disability insurance— also helps to keep employees productive since they spend fewer resources on financial concerns.
Ongoing employee benefits communications can also help reduce concerns. Keeping workers informed as the company considers options and makes decisions around health care reform can help to build trust and maintain productivity.
"A comprehensive benefits strategy incorporating voluntary supplemental health benefits, wellness programs and effective employee communications is a win-win proposition for both employers and employees concerned about health care reform," notes Fradkin. "This approach can help employers provide the benefits support their employees need without impacting their benefits budgets."
Findings from the MetLife study with actionable steps for incorporating supplemental benefits programs into a successful benefits strategy can be found online at BenefitTrends.MetLife.com. Additional insights from MetLife's 11th Annual Study of Employee Benefits Trends will be added to the website throughout the year, and visitors to the website can sign-up to receive automatic updates as new data is posted.
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