Study Shows Lack of Understanding Benefits Impacts Decisions
0,
(PLANSPONSOR.com) --
September
13, 2011 (PLANSPONSOR.com) – New research from the Open Enrollment Survey of the Aflac
WorkForces Report shows more than three-quarters (76%) of American workers who
make decisions about benefits coverage during open enrollment admit to making mistakes
about their benefits decisions.
In addition, 42% of workers say they have wasted money each year
because of mistakes they made with their insurance benefits, and more than
four-in-five of them say they are at least somewhat concerned about the possibility
of an unexpected medical expense, considering their current financial
situation.
Aflac conducted an online survey of 2,220 U.S. adults ages 18+,
of whom 980 were employed full/part time and responsible for insurance
decisions. The survey was conducted in August 2011by Harris Interactive.
Among other key discoveries, the study uncovers the primary ways
Americans make costly mistakes in benefits decisions and reveals the impact
Americans' concerns about unanticipated out-of-pocket expenses are having on
their lifestyles.
"Far too many American workers are making avoidable
mistakes in benefits coverage decisions — from not meeting deductible amounts
to contributing too little to Flexible Spending Accounts — and, as a result of
their lack of understanding or confusion, they often pay a price in multiple
ways," said Audrey Tillman, Executive Vice President of Corporate
Services at Aflac.
For example, in terms of cost-bearing mistakes and their
consequences, the most common include not electing available benefit coverage
such as vision, dental or voluntary, choosing the wrong level of coverage, and
putting too little in a flexible spending account. As a result of paying
unexpected out-of-pocket medical costs, 65% of workers have had to make sacrifices,
including cutting back on social activities (40%), luxury items (34%),
purchasing gifts (29%), and taking a vacation (28%). Others admitted to working
more hours (21%), creating a strict household budget (21%), and increasing use
of credit cards or line of credit (19%).
Seventy-four percent of workers say that when thinking about
their choices for major medical insurance coverage, they only sometimes or
rarely or never understand everything that is covered by their policy — while
slightly more than half (59%) of workers who choose the same benefits year
after year say they only sometimes or rarely or never have a full understanding
of the changes in the policies each year. Although most do not fully understand
their health care insurance policies, workers are worried about unexpected
medical expenses. In fact, 83% of workers say they are at least somewhat
concerned about the possibility of an unexpected medical expense, with 30%
saying they are extremely/very concerned, considering their current financial
situation.
To view the study results, visit AflacWorkForcesReport.com.
Tara Cantore
editors@plansponsor.com