Employers, workers seek more options as satisfaction with health coverage lags

Neither employers nor workers are satisfied with current health insurance options as open enrollment approaches.

“Most of us expect employers to offer health insurance benefits, and employers know that doing so helps them hire and retain the best workers,” a recent eHealth survey finds. “However, small businesses are struggling with the cost of coverage, and employees don’t feel the health plan choices they’re given align well with their needs.”

More than 9 in 10 employers agree or strongly agree that that supporting employee health coverage helps them hire and retain the best workers. Of those not offering coverage, 57% say they would do so if they could afford it. Four in 10 say they are struggling to afford the cost of offering group health coverage for employees. An additional 11% say they really can’t afford it and may have to stop offering coverage entirely.

Sixty percent say the cost of monthly premiums is the biggest challenge to offering coverage, 18% cite uncertainty about future costs and 12% mentioned finding the right plan for their workers.

At the same time, nearly three-fourths of employees believe employers prioritize their own needs when selecting health plan options for workers. Only about a quarter feel that their own needs drive employers’ considerations. Nearly 6 in 10 say their employer-sponsored health plan choices are not well aligned with their personal needs, while only 20% say their employer has a good understanding of their health care needs.

Employees also want more plan options. About half say they are offered only one or two health insurance plans by their employer; 41% are given three or four options; and 9% are offered five or more choices. If they were selecting their own health insurance plan, most (55%) say they would need to review six or more plan options, and 20% say they would need to review more than 10 options.

Related: Is group health insurance available for small businesses?

Employers also would welcome more options. Eighty-seven percent say they would prefer to help their employees get health insurance without having to sponsor a group health plan. However, 64% of employers say they are unaware of Individual Coverage Health Reimbursement Arrangement products that would allow them to offer financial support to workers in choosing their own health insurance plans. This type of alternative may be able to help employers hold the line on cost while providing workers another option.

“Our survey suggests that many employers are unsatisfied with the standard group health insurance model — and many employees feel the same way,” eHealth CEO Fran Soistman says. “I would especially encourage smaller businesses that just can’t afford group health insurance to consider alternatives like ICHRA to control costs and give employees more personalized coverage options.”