More than 90% of employees opt for the same health plan they previously had
Despite the best efforts of brokers, more than nine in 10 employees will select the same plan they had the previous year during open enrollment, a recent survey from Voya Financial found.1
Although this research shows that inertia plays a role for employees in making benefits changes, it also found that nearly half of eligible employed Americans spend less than 20 minutes reviewing information related to their workplace benefits during open enrollment period.2 The good news is that nearly 80% of employees “strongly agree” or “agree” they will spend more time reviewing their employee benefits options and coverage this year than they did during the last enrollment period.1
“The workplace annual enrollment period is the one time of year employees can review and engage with their employer’s holistic benefits package, which should not be taken lightly,” said Nate Black, vice president, health solutions product development, for Voya Financial. “While it’s encouraging that most employees will be spending more time reviewing their options this year, now is also the time for employers to be engaging and communicating with their workforce about the value of the solutions they offer.”
The survey found that workers are almost three times more likely to choose a Preferred Provider Organization (PPO) over a High-Deductible Health Plan (HDHP) when the plans are labeled their branded names of “Traditional PPO” (74%) and “High-Deductible Health Plan” (26%).1 However, when plan names are unbranded, removing “high deductible” from the plan name, the preference gap narrows considerably: 52% chose the unbranded PPO, and 48% chose the unbranded HDHP.1
“It’s clear that employees’ decisions can be driven by underlying, non-financial factors like inherent biases against HDHPs, their own inertia around decision-making and an aversion to high deductibles,” Black said. “As employees make several quick decisions during annual enrollment, further education and guidance around the benefits and solutions offered through the workplace is critical. Helping employees overcome these obstacles can enable them to make the best decisions and choices for them and their family — and potentially help create improved financial outcomes for employees and employers alike.”
The survey also found that only 3% of working Americans understand the full benefits of a Health Savings Account (HSA), which is only slightly higher among current HSA owners at 4%.1 Specifically, less than half of respondents were aware HSAs can:
- Pay for health care expenses in retirement (47%);
- Provide tax advantages (47%);
- Roll money over from year to year (43%); and
- Be used as an investment vehicle (29%).1
“This data underscores the notion that employees may be lacking an ability to build strategies to help them increase health care savings; cover medical and living expenses in retirement; or to use their account as an investment vehicle once the account balance reaches a certain threshold,” according to the survey report.
Note: As with any investment, there are risks; make sure to fully explore those risks before choosing to invest your balance.
This article was written by Lily Peterson from BenefitsPro and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.
- 2024 Voya Health and Benefits Omni Research, Voya Financial Consumer Insights & Research survey conducted from Sept. 27 to Oct. 7, 2024, n=345 responses were collected among U.S. citizens age 18+, employed full time or part time (and not self-employed), sole or shared household decision-maker for financial/investing and health/medical plans, are benefit eligible for employer-sponsored retirement savings plan (e.g., 401(k), 403(b)) and medical health plan, are currently enrolled in employer-sponsored retirement and health plan.
- Voya Financial Consumer Insights & Research Survey conducted with Morning Consult Sept. 25-27, 2024, among 513 adults who work full time or part time and are benefits eligible aged 18+ in the U.S.
This material is not legal advice and is provided for informational purposes only.
Health Savings Accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). Custodial services provided by Voya Institutional Trust Company.
This highlights some of the benefits of a Health Savings Account. If there is a discrepancy between this material and the plan documents, the plan documents will govern. Subject to any applicable agreements, Voya and its subcontractors reserve the right to amend or modify the services at any time.
The amount saved in taxes will vary depending on the amount set aside in the account, annual earnings, whether or not Social Security taxes are paid, the number of exemptions and deductions claimed, tax bracket and state and local tax regulations. Check with a tax advisor for information on whether your participation will affect tax savings. None of the information provided should be considered tax or legal advice.
Investments are not FDIC Insured, are not guaranteed by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC), and may lose value. All investing involves risks of fluctuating prices and the uncertainties of return and yield inherent in investing. All security transactions involve substantial risk of loss.
Not FDIC/NCUA/NCUSIF Insured I Not a Deposit of a Bank/Credit Union I May Lose Value I Not Bank/Credit Union Guaranteed I Not Insured by Any Federal Government Agency