Benefitfocus State of Employee Benefits ™ 2021 report for mid-size employers shows increase in employee benefits participation and cost sharing
CHARLESTON, SC, May 25, 2021 / PRNewswire / – Benefitfocus, Inc. (NASDAQ: BNFT), a cutting-edge benefits technology platform that simplifies benefits administration for employers, health plans and brokers, released the second in a series of reports in its State of Benefits ™ 2021, in this case focusing on trends in mid-size employer groups, defined as employers with 100 to 999 employees.
The report explores how a changing multigenerational workforce and the impact of COVID-19 have affected healthcare costs and the design of healthcare plans for mid-sized employers. It compares their response to large employers (over 1,000 employees) and the potential impact on employees. The first report in the State of Employee Benefits 2021 series analyzed the design and participation of large employer benefit plans.
According to the latest report, mid-sized employers appear to have maintained consistent health insurance offerings and cost-sharing trends since 2018, similar to the market findings of large employers. However, as large employers have remained consistent in their efforts to increase voluntary employee benefit offerings in 2021, mid-size employers have reduced those offers. Employees, on the other hand, show a greater demand for voluntary benefit products – even those that are not funded by the employer.
Based on the analysis of the data compiled, the report concludes with opportunities for health plans to provide mid-size employers with enrollment solutions that will enable transparent administration of medical coverage as well as health insurance packages. ‘more robust voluntary benefits.
“The data we have collected over the past few years provides specific insight into the design of mid-sized employers’ benefit plans and the participation trends of their employees,” said Stephane Lance, Senior Vice President of Benefits Catalog at Benefitfocus. “This information, along with our platform and roadmap for software enhancements, highlights the opportunity for health plans to better serve the mid-size group market as the needs arise. healthcare and employee change. “
“These two editions of State of Employee Benefits show how we leverage data to create information and advice for our clients,” said Matt Levin, President and CEO of Benefitfocus. “It’s part of our commitment to ensuring that our customers get the best return on their investment in healthcare delivery and that everyone in our ecosystem makes good decisions about healthcare choices. “
Among the main findings of the report:
- Health insurance offers: Since 2018, there is little change in the percentage of mid-sized employers offering only traditional health insurance options and those offering a combination of traditional and high-deductible health insurance plans (HDHP), while the percentage of employers offering only HDHP has halved. Mid-sized employers offer fewer health insurance options than large employers.
- Health expenditure accounts: Since 2018, the The percentage of mid-sized employers offering at least one health spending account option has increased by almost 40%. More than half now offer both a Health Savings Account (HSA) and a Flexible Spending Account (FSA). Mid-sized employers offer either an HSA-only option or an FSA-only option at a higher rate than large employers.
- Participation in employee health insurance: Traditional plans have remained the most popular choice through generations compared to HDHP for employees of medium-sized employers. However, overall enrollment is increasing for all generations except Traditionalists, as they are likely enrolled in Medicare or other coverage. Gen Z has seen the strongest growth in participation in all types of plans since 2018, while Gen X has the largest overall participation in employer-sponsored health insurance in 2021.
- Health insurance premiums: On average, health insurance premiums increased in 2021 for mid-size employers and employees in most types of plans. however, employee bonuses are considerably less than they were in 2018. This is likely due to the fact that employers assume a higher percentage of the total premium from 2019 to 2021 for most types of plans. This differs from large employers, which only increased their share of the total premium in 2021.
- Voluntary benefit offers and participation: Voluntary benefit offers for mid-size employers have steadily increased since 2018, with hospital compensation offers almost doubling from 15 percent to 28 percent. however, voluntary accident, critical illness, hospitalization and legal insurance offers decreased slightly in 2021, while pet insurance and identity theft protection grew over the same period – 27% and 12% increases, respectively. Even with this growth, the voluntary benefit delivery rates of mid-sized employers are significantly lower than those of large employer groups, with the exception of pet insurance.
For this report, Benefitfocus compiled registration transaction data from 144 mid-size employer groups (100 to 999 full-time employees), representing 244,000 individual employees. The data was evaluated on an anonymous basis. Registration records include both active and passive registrations made by various industry roles (employee, carrier representative, broker, benefits administrator, etc.) from fall 2017 to fall 2020 for the effective dates of January 1, 2018 through January 1, 2021. These metrics are not intended to be a nationally representative sample, but to represent the overall activity of mid-size employers on the Benefitfocus platform.
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Benefitfocus (NASDAQ: BNFT) unifies the entire benefits industry with innovative technology solutions that bring efficiency, savings and simplicity to benefits administration. Our powerful cloud-based software, data-driven insights and carefully designed services help employers, insurance brokers, health plans and providers cope with the complexity of enrollment and registration. engagement benefits, while facilitating access to health, heritage and lifestyle products through a benefits experience. Our mission is simple: to improve life with benefits. Learn more about www.benefitfocus.com, LinkedIn andTwitter.
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS
Except for historical information, all statements, expectations and assumptions contained in this press release are forward-looking statements. Actual results may differ materially from those expressed or implied in forward-looking statements. Important factors that could cause actual results to differ materially include: volatility and uncertainty in the global economy and financial markets in light of the evolution of the COVID-19 pandemic and uncertainties arising from recent US elections; our continued losses and our need to achieve GAAP profitability; fluctuations in our financial results; our ability to maintain our culture, retain and motivate qualified staff; the immature and volatile market for our products and services; risks associated with changes in healthcare and other applicable regulations; risks associated with acquisitions; cybersecurity risks; the need to innovate and offer useful products and services; our ability to compete effectively; privacy, security and other risks associated with our business; and other risk factors set forth from time to time in our documents filed with the SEC, copies of which are available free of charge in the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec-filings or on request from our Investor Relations Department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
SOURCE Benefitfocus, Inc.