Workers Underestimate Cost of Providing Health
Benefits
March 13, 2009 (PLANSPONSOR.com) - A worker
sentiment study by Fidelity Investments' Consulting Services
business found most workers surveyed underestimate employers'
cost of providing health insurance to employees.
According to a Fidelity press release, a majority
(53%) believe their employers pay less than $5,000
annually per person to provide health insurance, when, in
fact, Fidelity said, health plans typically cost
employers $5,000 to $15,000 per employee on an annual
basis. In addition, the study found that while 72% of
respondents believe the benefits they receive at work are
better than, or as good as, what most other companies
offer, most feel the value of benefits has dropped, with
61% of workers saying they pay more for benefits but get
less or the same as they did in 2007 (see
Health Care Costs Hurt America's
Competitiveness
).
In the study, workers cited health insurance,
retirement savings plan matching contributions, and
dental insurance as the three most important benefits,
the press release said.
Almost half of American workers surveyed (48%)
believe their benefits, including health insurance,
retirement savings plans and pension plans, won't be
provided by their employer 10 years from now. The study
found that 30% of workers surveyed think they will be
responsible for obtaining their own benefits by 2019; 18%
think the government will provide benefits; 28% think
employers will still provide benefits to their workers;
and 24% are not sure.
However, in another recent study, a majority of
large U.S. employers indicated they are confident they
will continue to offer health care benefits to workers 10
years from now (see
Employers Committed to Providing Health
Care Still a Majority
).
Fidelity found that benefits are so critical to
today's employees. One out of four surveyed said they are
working more to receive the accompanying benefits than to
receive the income. In addition, eight out of 10 of those
surveyed would opt to have health care benefits provided
through their job rather than receive a cash payment to
manage their own health care needs.
When asked what their biggest concern would be if
they were to lose their job today, 57% of workers
surveyed said it would be being able to pay their rent or
mortgage. Losing health care insurance ranked number one
for 25% of workers.
Data for the survey was collected January 7-13,
2009, by the independent market research firm Synovate
from 676 adults who have employer-provided health
insurance coverage and work at companies with at least
100 employees.
Rebecca Moore
editors@plansponsor.com