As Health Insurance Costs Rise, Employees Request More Flexibility

Every November, American workers purchase health insurance for the next year. These costs increase every year.

Employer-provided health insurance is expected to grow fastest in 2024 as inflation impacts insurance policies. KFF, formerly the Kaiser Family Foundation, estimates that employees will pay an average of $8,475 for their share of $24,000 in annual family insurance premiums in 2023, up 7% from last year. Over the last five years, the average family insurance premium rose 22%, worker wages rose 27%, and inflation rose 21%.

The typical average annual deductible for covered employees is $1,735 per coverage. According to a study by KFF, workers at small companies contribute an average of $2,445 more toward family insurance costs than workers at large companies.

The type of health insurance and other benefits a company offers can be a deciding factor in hiring a candidate. Employer benefits can include traditional offerings such as wellness programs, company-paid life insurance, paid vacation and flexible vacation, as well as new benefits such as paid paternity/adoption leave, flexible work hours, on-site fitness centers and flexible work savings. . . . Check

According to the North Dakota Jobs Service, in 2022, 71% of companies in the state offered individual health insurance to full-time employees and 56% offered family health insurance. Dental insurance was purchased by 52% of employers and vision insurance was purchased by 44%.

Health savings accounts and flexible savings accounts are becoming increasingly popular. One in five North Dakota companies, or 20%, had offered an HSA by 2022, and 17% had offered an FSA. Vacation is offered by 71% of employers, general vacation/vacation by 43%.

In November, Prairie Business spoke with two Blue Cross Blue Shield North Dakota executives to find out what employer-employee combination they look for in their insurance plans.

Joan McCusker is Executive Vice President of Corporate Strategy at BCBSND. Here you can get an overview of the employee benefits offered by the company.

Christy Hopper, Executive Vice President and Chief Marketing Officer, discusses workforce trends and what BCBSND is hearing from employers.

“Employees work for pay, benefits and satisfaction. We consider satisfaction as part of the services we offer. This is a very important way to make our employees feel valued and supported,” said McCusker.

Providing employees with flexibility is key to achieving this satisfaction and has become a priority during the pandemic. As many companies across the country send workers home early to leave work, employers have had to adapt to ensure the safety of their employees and continue to serve their members or customers.

About a third of BCBSND employees continue to work remotely voluntarily, about a third work hybrid – working in the office a few days a week and some at home – and the remaining third come to the office every day.

In addition to flexible schedules, employees are also demanding flexibility in benefits, such as switching from traditional retirement plans to 401(k) plans, McCusker said.

“This offers more flexibility for employees who do not want to stay with the company for years as before. People also want flexibility in their vacation and holiday plans. We typically offer several standard holidays, but we also offer three flexible holidays,” McCusker said.

Another trend that is gaining momentum is the increasing respect and attention for mental health. There is less stigma around these issues and more recognition of the benefits of mental and behavioral health.

In general, employers want to reduce the cost of their health insurance premiums, Hooper said. Health care costs are driven by inflation, utilization, increased regulation, increases in chronic disease and obesity, and the proliferation of specialty medications.

More than half of adults in the United States, about 52%, suffer from chronic diseases such as arthritis, cancer, chronic obstructive pulmonary disease (COPD), coronary artery disease, asthma, diabetes, hepatitis, high blood pressure, stroke, and kidney disease. Malfunction or failure. According to the Centers for Disease Control and Prevention (CDC) National Health Survey. More than 27% of adults in the United States suffer from a chronic illness. Various chronic diseases not only complicate treatment but also increase its costs. Less than 5% of the US population accounts for 50% of healthcare spending.

Engagement is key to managing chronic illness, but people are losing interest in their care, according to the 2023 BCBSND Health Care Cost Report. Cost management strategies include population health management – ​​analyzing data to identify the three most common diseases in a given population (e.g., an employer group) and recommending interventions, programs, and tools to support these members; Case management program. For people with serious illnesses, injuries or disabilities, care managers help create successful care plans at no additional cost. and disease-specific programs and prevention – for example, using digital tools to provide a personalized and targeted approach to diabetes prevention.

The nationwide behavioral and substance abuse crisis is also impacting employers in North Dakota. In 2021, a quarter of North Dakota residents reported behavioral health symptoms in the past year. Telemedicine and online therapy help treat people with mental health and substance abuse problems.

Some companies are adding computer therapy, which can help people with depression, anxiety and insomnia, for example. Accessing these resources from home, particularly in rural areas where face-to-face meetings with professional therapists may be more difficult, is an added benefit that workers appreciate, explains McCusker.

Health plans also promote wellness programs among various employer groups. Preventive measures, such as education about healthy living, quitting smoking or losing weight, have become commonplace. A healthier workforce is expected to reduce healthcare costs for employees and employers.

Another new trend is employers offering paid time off for volunteer work. Younger employees typically ask about these benefits at the beginning of the interview, but all employees are likely to take advantage of these benefits if their employer offers them.

Parental leave is another BCBSND benefit for those who have new children at home or have recently adopted a child, McCusker said.

One benefit offered by some large companies is 401(k) student loan contribution matching. For example, full-time and part-time employees are eligible to participate in the company's 401(k) plan and contribute 2% of their eligible salary toward student loans through the 401k payroll deduction or the amount offered by the company. Program beneficiaries receive a subsidy without having to contribute to the 401(k) program, allowing them to use more of their income to pay off their student loans.

The size of the company and the industry in which the employees work influence the type of services offered and their costs. According to the KFF report, the majority of workers in the United States work at large companies (200 employees or more). By 2023, 98% of all large companies will offer health benefits, and 100% of large companies (1,000 employees or more) will offer insurance coverage. Nationally, 76% of state or local governments offer health benefits to their employees, followed by 71% of manufacturing companies and 65% of financial institutions. Of the smallest companies with three to nine employees, about 39% offer health insurance benefits to their employees.

At BCBSND, employers see higher participation rates and employees feel better about taking advantage of wellness programs, Hooper said. This changes the perception of managers who are encouraged to lead by example and benefit from the wellness programs on offer.

“For employer groups, success in developing great insurance products depends on giving them the tools and training them on those tools and showing them how to best take advantage of the benefits that insurance offers,” Huber said . “The focus is on collaboration.”

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