New Study Reveals Surprising Link Between Supplemental Health Benefits and Employee Financial Confidence

Employees across the U.S. are gearing up for open enrollment season, and a recent survey conducted by New York Life's Group Benefit Solutions sheds light on the crucial role of supplemental health insurance in enhancing employees' financial well-being.
Enhancing Financial Confidence:
The survey results show a strong correlation between having supplemental health insurance and employees' financial confidence. A striking 70% of employees with supplemental health insurance feel confident about meeting their financial goals, compared to only 60% of those without it. Similarly, 59% of employees with supplemental health insurance feel financially secure, in contrast to just 52% of those without this added benefit.
Healthcare Challenges:
Rising healthcare costs remain a top concern for most employees, with 57% facing out-of-pocket expenses not covered by their health insurance plan this year. Additionally, 64% express worries about healthcare costs, while 74% wish their out-of-pocket expenses were lower.
Employee Benefits Preferences:
When it comes to desired benefits, employees prioritize an employer match on a 401(k), followed by supplemental health insurance, flexible work arrangements, mental health support, and long-term care insurance. Notably, supplemental health insurance ranks high among employees considering a job change, with 42% listing it as a top benefit they seek from potential employers.
Knowledge Gap:
The survey highlights a knowledge gap among employees regarding their benefit plans, with less than half feeling well-informed about the details and offerings. Only 34% believe they are extremely knowledgeable about which benefits suit their needs, indicating a need for more education and guidance in this area. Kristina Welke, Head of Strategy, Solutions, and Marketing at New York Life Group Benefit Solutions, emphasized the importance of empowering employees to make informed decisions, particularly during the open enrollment period. Employers have a unique opportunity to provide comprehensive benefit packages that include supplemental health insurance, offering additional resources and educational support to enhance employees' financial security and overall well-being. As the survey data suggests, addressing the knowledge gap and fostering better understanding of benefits is crucial for ensuring employees maximize the value of their benefits. In conclusion, offering supplemental health insurance options can significantly contribute to employees' financial confidence and peace of mind in the face of rising healthcare costs. Open enrollment presents a strategic moment for employers to support their workforce in making informed choices that positively impact their financial security. By prioritizing education and clear communication, employers can help employees navigate benefit options effectively and secure their financial well-being.