With open enrollment season upon us, new data shows U.S. employees now believe the expansion of health care coverage, telemedicine and supplemental insurance is more important today because of the pandemic. According to the 2021 Aflac WorkForces Report, almost half (44%) of all U.S. employees purchased at least one new health benefit in response to the COVID-19 pandemic, with half of those adding life insurance. Roughly, one-third of respondents said they purchased critical illness, hospital indemnity, telehealth services or mental health resources.
Aflac, a leading provider of supplemental insurance and products in the U.S., conducted its 11th annual, national online survey of 1,200 benefits decision-makers and 2,000 employees across the U.S. The objective of the survey is to capture industry trends and the attitudes of American employers and employees regarding the state of health care benefits in America.
"Last year's Aflac WorkForces Report showed that the pandemic was a wake-up call for workers to consider spending more time and effort in researching health care benefits during the open enrollment period. Now, we are seeing that wake-up call turned into action," said Matthew Owenby, chief human resources officer at Aflac. "This year's survey demonstrates the heavy impact COVID-19 has had on American consumers' opinions and actions regarding their health insurance and financial security, which was even stronger for those who actually had a positive COVID-19 diagnosis."
Positive COVID-19 test strongly influenced benefit decisions
The survey found that those respondents who had tested positive for COVID-19 were more likely than other respondents to purchase at least one new health benefit. Specifically:
38% purchased life insurance vs. 16% without a COVID-19 diagnosis.
29% purchased hospital vs. 9% without a COVID-19 diagnosis.
26% purchased critical illness vs. 12% without a COVID-19 diagnosis.
24% purchased mental health services vs. 10% without a COVID-19 diagnosis.
"COVID-19 is still very top of mind for employees, and they are seeking ways to help offset the financial burdens they have either experienced or have feared over the past 17 months," added Owenby. "Financial vulnerability will continue to be a concern during this year's open enrollment season as rising health care expenses continue to affect Americans during these uncertain times."
Although the pandemic presented many challenges for Americans, it also magnified the fact that illnesses can strike at any moment and affordable health care is a necessity. Nearly one-third of respondents (29%) indicated the pandemic made them more aware of the costs associated with health care – leading them to change when deciding on health care benefits.
Recognizing this need, more than half (51%) of all American workers view supplemental benefits such as critical illness insurance, which provides additional coverage to help close the gap on specified health challenges that health insurance may not cover, as a core component of a comprehensive benefits program, and an overwhelming majority (90%) believe the need for supplemental benefits is increasing.
Are employers missing the mark? How benefits weigh on job satisfaction
Offering robust benefits while staying within budget continues to be benefits decision-makers' most significant challenge. More than half (60%) of employers indicated they observed an increase in benefits costs over the past year, which caused an adverse negative impact to their operating plans, including improving the quality of their benefits programs, awarding bonuses and offering raises. However, despite these rising costs, most employers plan to maintain their existing health insurance coverage.
This strategy might not bode well for employers. When it comes to satisfaction with existing benefits packages, the survey found a glaring disconnect, as employers have an inflated sense of employee satisfaction when it comes to the benefits they offer. More than three-quarters (76%) of employers believe their employees are satisfied with their benefits package, whe...
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