Consumers are still confused about health plans and savings
HSA Bank’s latest study identifies possible holes in benefits engagement and how to plug them.
There’s often a disconnect between employees and their benefits, according to HSA Bank’s 2020 Health & Wealth Index, which found many consumers aren’t familiar enough with key aspects of their health plans, aren’t planning adequately for retirement and are worried about managing their future health needs.
Among those surveyed, 42% didn’t know whether they were eligible for HSA under their health care plan, while less than half knew what their health plan costs were.
Related: How can we get more consumers to use HSAs?
And though Generation Z, the youngest group, were more engaged with health and wealth than their older counterparts, the study found only 9% of them knew how much their out-of-pocket maximum was.
Consumers with Medicare and Medicaid, meanwhile, were most confused about all aspects of their plan costs.
But it’s not a lost cause, according to HSA Bank, which said employers can use decision support tools such as this online calculator and personalized decision support to help staff figure out which health plan and savings program is best for them. In some cases, the report also recommends offering pre-retirement education before they’re eligible for Medicaire, and reminding over 55s they can get up to $1,000 in HSA catch-up contributions each tax year.
The average consumer isn’t doing much financial planning, according to the study, which said even though health care is one of the biggest retirement expenses, most respondents rarely save money for it. And regardless of income level, most cited cost as the key reason for lack of coverage.
That means employees could use some help saving, the way HSA Bank sees it. The report suggests contributing a certain amount to staff HSA’s each year, offering match contributions or using contributions to encourage them to participate in wellness programs. Retirement reimbursement arrangements might also work for employees close to retirement, as it helps pay for some mid-retirement medical expenses.
The data revealed more than half of those surveyed were worried about existing or future medical bills, and just 15% regularly put money aside for it. That said, the majority reported transitioning to a healthier lifestyle in the past year, and most agreed that their insurance plan helps them manage costs and get the medical services they need.
That presents an opportunity for employers to encourage staff to embrace preventative services, such as annual exams, dental exams, flu shots and other preventive screenings, according to HSA Bank.
The annual study quizzed 2,000 random adults across the U.S. to measure how they engage with their health status, plan enrollment and financial well-being. This year’s average engagement score was 56.4 out of 100 — or moderately engaged — down from last year, when the average consumer was highly engaged in their health and wealth plans.
The most engaged group had high-deductible health plans, according to the report, which put that down to a greater need to plan for future expenses. But the data was collected before COVID-19, so it’s unclear how the pandemic might have skewed the findings.
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