In order to understand the benefits users’ mindset for the 2023 enrollment season, Elevate, the next-generation consumer-directed benefits platform, has released the findings of a poll of employees at significant private-sector businesses (2,500+ employees).
The poll, which included more than 775 participants, found that most workers are under a financial strain, which causes them to limit their discretionary spending and healthy living costs. Some even forego both required and optional medical treatment.
Financial security is a top concern due to inflation’s impact on employee budgets and the expectation of a harsher recession in 2023. 65% of respondents said they plan to reduce discretionary spending and increase spending on essentials.
When it comes to healthcare, making cuts might often mean completely skipping care. For example, 28% of workers postpone screenings or wellness checks, and 14% put off important medical procedures or prescription fillings.
The majority of respondents—88%—believe that benefits contribute to their financial stability, and 78% say that being ready for out-of-pocket medical expenses is very critical or very important. However, perception, a lack of information about benefits, and illiteracy may lead to incorrect benefit choices, which might harm employees’ well-being and increase business expenditures.
“Many companies really comprehend the financial hardship that employees are experiencing as a result of the macroeconomic environment as a whole. However, companies should be concerned about the number of workers who put off wellness examinations and visits, according to Brian Cosgray, CEO, and co-founder of Elevate.
No matter how well-intentioned, suboptimal benefits decisions will eventually have an effect on healthcare expenses, employee presence, engagement, and productivity for both the company and the employee.
