COLUMBUS, Ga., Oct. 18, 2021 /PRNewswire/ -- With open
enrollment season upon us, new data shows U.S. employees now
believe the expansion of health care coverage, telemedicine and
supplemental insurance is more important today because of the
pandemic. According to the 2021 Aflac WorkForces Report, almost
half (44%) of all U.S. employees purchased at least one new health
benefit in response to the COVID-19 pandemic, with half of those
adding life insurance. Roughly, one-third of respondents said they
purchased critical illness, hospital indemnity, telehealth services
or mental health resources.
Nearly Half of American Workers Purchased at Least One New Health
Benefit in Response to the COVID-19 Pandemic
Aflac, a leading provider of supplemental insurance and products
in the U.S., conducted its 11th annual, national online survey
of 1,200 benefits decision-makers and 2,000 employees across the
U.S. The objective of the survey is to capture industry trends and
the attitudes of American employers and employees regarding the
state of health care benefits in America.
"Last year's Aflac WorkForces Report showed that the pandemic
was a wake-up call for workers to consider spending more time and
effort in researching health care benefits during the open
enrollment period. Now, we are seeing that wake-up call turned into
action," said Matthew Owenby, chief
human resources officer at Aflac. "This year's survey demonstrates
the heavy impact COVID-19 has had on American consumers' opinions
and actions regarding their health insurance and financial
security, which was even stronger for those who actually had a
positive COVID-19 diagnosis."
Positive COVID-19 test strongly influenced benefit
decisions
The survey found that those respondents who had tested positive
for COVID-19 were more likely than other respondents to purchase at
least one new health benefit. Specifically:
- 38% purchased life insurance vs. 16% without a COVID-19
diagnosis.
- 29% purchased hospital vs. 9% without a COVID-19
diagnosis.
- 26% purchased critical illness vs. 12% without a COVID-19
diagnosis.
- 24% purchased mental health services vs. 10% without a COVID-19
diagnosis.
"COVID-19 is still very top of mind for employees, and they are
seeking ways to help offset the financial burdens they have either
experienced or have feared over the past 17 months," added Owenby.
"Financial vulnerability will continue to be a concern during this
year's open enrollment season as rising health care expenses
continue to affect Americans during these uncertain times."
Although the pandemic presented many challenges for Americans,
it also magnified the fact that illnesses can strike at any moment
and affordable health care is a necessity. Nearly one-third of
respondents (29%) indicated the pandemic made them more aware of
the costs associated with health care – leading them to change when
deciding on health care benefits.
Recognizing this need, more than half (51%) of all American
workers view supplemental benefits such as critical illness
insurance, which provides additional coverage to help close the gap
on specified health challenges that health insurance may not cover,
as a core component of a comprehensive benefits program, and an
overwhelming majority (90%) believe the need for supplemental
benefits is increasing.
Are employers missing the mark? How benefits weigh on job
satisfaction
Offering robust benefits while staying within budget continues
to be benefits decision-makers' most significant challenge. More
than half (60%) of employers indicated they observed an increase in
benefits costs over the past year, which caused an adverse negative
impact to their operating plans, including improving the quality of
their benefits programs, awarding bonuses and offering raises.
However, despite these rising costs, most employers plan to
maintain their existing health insurance coverage.
This strategy might not bode well for employers. When it comes
to satisfaction with existing benefits packages, the survey found a
glaring disconnect, as employers have an inflated sense of employee
satisfaction when it comes to the benefits they offer. More than
three-quarters (76%) of employers believe their employees are
satisfied with their benefits package, when in reality, only 61% of
employees reported satisfaction.
An overwhelming majority of employers (81%) believe their
workforce is able to financially meet their health care
obligations, yet almost half (46%) of employees report that they
could not pay more than $1,000 for
out-of-pocket medical expenses, and a similar proportion (52%)
could not go for more than one month without a paycheck.
Anxiety is a COVID-19 fact of life
According to the survey, half of all American workers reported
having high anxiety about health care costs beyond what their
insurance covers, with 1 in 3 American workers stating that their
personal mental health has negatively impacted their job
performance over the last year. Essential workers are 1.75 times
more likely than nonessential workers to say their mental health
negatively affected their job performance over the last year (42%
vs. 24%). Unsurprisingly, anxiety is highest among the younger
generations, who have higher levels of financial fragility.
In addition, about half of all American workers are currently
experiencing varying levels of burnout based on key demographic
characteristics. Specifically, younger workers (Gen Z, 64%, and
millennials, 60%), essential workers (58%) and those who have been
personally affected by a COVID-19 diagnosis (59%) are currently
more likely experiencing burnout. Women (67%) are also more likely
than men (56%) to have ever experienced burnout.
"The Aflac WorkForces Report makes it clear that maintaining the
status quo with employee benefit packages may not serve employers
well," said Owenby. "Paying close attention to the wellness and
mental health of employees and offering them the benefits they need
are as important as ever to help employees feel protected and
valued, which in turn helps improve productivity, enhance
engagement and reduce stress."
To learn more about the 2021 Aflac WorkForces Report, visit
AflacWorkForcesReport.com.
About the 2021 Aflac WorkForces Report
The 2021 Aflac
WorkForces Report, conducted by Kantar on behalf of Aflac, is the
11th annual study examining benefits trends and attitudes across
the United States in various
industries and business sizes. The employer survey took place
online between June 28 and July 14,
2021, and captured responses from 1,200 employers. The
employee survey captured responses from 2,000 employees
between June 28 and July 16,
2021.
For complete survey methodology, please contact Darcy Brito at dbrito@aflac.com.
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE:
AFL) is a Fortune 500 company helping provide protection to more
than 50 million people through its subsidiaries in Japan and the U.S., where it is a leading
supplemental insurer, by paying cash fast when policyholders get
sick or injured. For more than six decades, insurance policies of
Aflac Incorporated's subsidiaries have given policyholders the
opportunity to focus on recovery, not financial stress. Aflac Life
Insurance Japan is the leading provider of medical and cancer
insurance in Japan, where it
insures 1 in 4 households. For 15 consecutive years, Aflac
Incorporated has been recognized by Ethisphere as one of the
World's Most Ethical Companies. In 2021, Fortune included Aflac
Incorporated on its list of World's Most Admired Companies for the
20th time, and Bloomberg added Aflac Incorporated to its
Gender-Equality Index, which tracks the financial performance of
public companies committed to supporting gender equality through
policy development, representation and transparency, for the second
consecutive year. To find out how to get help with expenses health
insurance doesn't cover, get to know us at Aflac.com or
Aflac.com/Espanol.
Media contact – Jon A. Sullivan,
706-763-4813 or Jsullivan@aflac.com
Analyst and investor contact – David A.
Young, 706.596.3264, 800.235.2667 or dyoung@aflac.com
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SOURCE Aflac