Employers can help address health equity through benefits

Three in four large employers are concerned about health equity. Their concerns are justified. A recent study finds that nearly seven in 10 full-time employees of large U.S. employers report experiencing at least one unmet basic need, such as economic stability, housing, transportation and social support. 

The disparities are heightened for certain employee populations of employees. For example, 69% of employees of color earning less than $100,000 experienced two or more unmet basic needs. Sixty-six percent of LGBTQ+ employees also cited two or more unmet basic needs. 

When basic needs aren’t met, employees are 2.4 times more likely to skip physical health care. Employees with unmet needs also report feeling less productive and have missed six or more work days in the past year.

The implications of employees with unmet basic needs translate into increased health care costs and lower productivity for employers. The annual cost of lost productivity attributed to health disparities is estimated at $42 billion. 

With 55% of Americans accessing medical insurance and other wellness benefits through the workplace, employee benefits can play an important role in improving health equity. Employers have opportunities to address inequities through benefits strategies focused on equitable access, inclusive communication and company culture.

Optimizing benefits to reduce health inequity

Beyond employee pay, offering a wide range of benefits helps employers meet diverse employee needs. But it’s not enough to simply offer benefits options. Improving health equity also requires employers to consider how the benefits are delivered.

• Equitable access: Even when employees have access to the same health benefits, 30% or more of Black, Hispanic and Latino, LGBTQ+ and younger employees say they have considered switching employers because of their health benefits. To address the issue and retain diverse employees, broaden the scope when defining access to include the diversity and locations of in-network providers, easy-to-use digital and telehealth options and incentives for preventive care. Consider offering benefits decision support tools to assist employees in the selection process, as well as care coordination resources to aid in scheduling appointments and navigating complex care options.

• Inclusive communications: Diverse employees are more likely to report confusion about whether they qualify for their company’s health insurance, employee assistance programs, leave policies or wellness benefits. Employers must apply a critical lens to current benefits communications and education tools. Do the materials consider cultural communication styles and needs/? Are they available in a range of languages? Do they use inclusive, gender-neutral language? Engage employees in the evaluation and solution development. 

• Company culture: Beyond regular communication, a company’s culture can drive increased awareness and utilization of benefits. For example, a benefits-supportive culture offers flexibility for employees to adjust their schedules to accommodate appointments. Another example is recognizing employees’ caregiving responsibilities by providing support, such as caregiver concierge benefits. Employee resource groups also reinforce a company’s commitment to inclusion, foster a sense of community and give employees a valued peer resource to help them navigate benefits usage.

By taking a holistic approach to strategic benefits, which include an emphasis on equitable access, inclusive communication and company culture, employers can provide a level of health equity for employees that improve workers’ health, increase productivity and assist with talent retention.

Learn more about how Harvard Pilgrim Health Care, a Point32Health company, can help build whole-health benefits packages to support employees and their families.