Workers want more health benefit options, employers concerned about cost, survey finds

At a time when employee benefits are more important than ever as businesses compete for talent, a growing number of workers are dissatisfied with their options.

“In today’s rapidly changing professional landscape, employee health benefits stand out as a category in desperate need of transformation,” according to the 2024 State of Employee Health Benefits report from the health insurance platform SureCo. “More than half of Americans under age 65 receive health insurance through their employer, but the current way companies offer benefits is no longer serving anyone.”

A survey of employees, HR and finance leaders, and benefits consultants found that:

• Eight in 10 employers saw health insurance renewal rates increase last year.
• Six in 10 employees would leave their current company for one with better health benefits.
• Thirty-eight percent of people are looking for a job with better benefits.
• Forty-seven percent of employees have considered seeking alternative health insurance benefits outside of their employer’s offerings.
• Almost half of workers said they have avoided or delayed preventive care or medical treatment because of concern that it wouldn’t be covered.
• Forty-two percent of employees said they would rather receive better health insurance than a raise this year.
• Eighty-five percent of companies have changed health care carriers or plan designs at least once over the past five years.

A traditional one-size-fits-all approach to benefits no longer works, the report said.

“Employers provide health benefits to nearly 163 million Americans, which puts them in the health insurance business whether they want to be or not,” it said. “In the current model, business owners, finance professionals and human resource leaders face the impossible task of selecting and paying for plans intended to suit everyone, but rarely do. More than 90% of companies offer only one to three insurance plans for their employees,”

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The challenge for employers is to provide more options while holding the line on cost.

“Health care costs are skyrocketing, and it’s tough to find that sweet spot between offering quality coverage and not breaking the bank,” the report said. “But employees aren’t just looking for the basics anymore. They want choices, they want flexibility and they want to feel like their health care needs are being heard. It’s not just about the numbers, either. Yes, health care rates are climbing and catching a lot of companies off guard. But it’s also about what employees really value. Mental health coverage? Huge. Services like fertility treatment? Vital for many.”

SureCo recommends considering alternative models, such as individual coverage health reimbursement arrangements. “It’s time to embrace the change, get creative and build health-care benefits that work for everyone,” the report concluded. “Because at the end of the day, that’s what it’s all about — keeping our teams healthy, happy and ready to tackle whatever comes our way.”