Most workers want employers to help them prepare for health care costs
Only 11% say their employers offered lifestyle benefits that could help them prepare for health care costs.
With the first quarter of the year winding down, many people have long since abandoned their New Year’s resolutions. Employers can help by providing the resources workers need to achieve their health care finance objectives.
More than three-fourths of employees surveyed by the health care payment company Alegeus says their employers should help them become financially prepared for health care costs. Although employers are preparing them to face the financial realities of health care through such benefits as health insurance (59%) and 401(k) or retirement plans (49%), respondents say they expect more. Only 11% say their employers offered lifestyle benefits that could help them prepare for health care costs.
“While many equate lifestyle benefits to free lunches and commuter benefits, there are a multitude of lifestyle-based benefits employers could provide — like healthy grocery services, life-planning support and financial wellness assistance — that can directly address the concerns respondents shared,” according to the survey report.
Two-thirds of respondents made financial resolutions for 2023, including:
- Saving more, 54%
- Spending less, 44%
- Sticking to a budget, 38%
Two-thirds of respondents are at least somewhat concerned about their ability to afford care for themselves or their family this year, but that number jumps to nearly 80% when asked about the ability to afford care into retirement. These concerns stem from various economic factors, but not many respondents believe they are prepared to manage their health care finances this year and beyond, with almost half only feeling somewhat prepared.
When asked to make an additional resolution specifically about their health care finances, respondents focused their responses on improving overall financial health (45%) and protecting themselves from unexpected health care expenses and medical debt by building up a savings cushion (37%).
Read more: A 3-step financial wellness framework: Help employees take action toward financial goals
Only 15% say they had made tax-free saving or spending a priority by enrolling in flexible spending accounts, health savings accounts or health reimbursement arrangements. Employees could save anywhere from $840 to $1,679 per year on taxes by doing so, according to Value Penguin. Money in an HSA also can roll over from year-to-year, which can provide a rainy-day fund for medical expenses, or it could be used as a retirement savings tool to pay for Medicare or other out-of-pocket costs.
“Now the onus has fallen on employers to provide the necessary tools to help employees prepare for these concerns,” the report says.