In the U.S., approximately 12.4 million full-time and part-time working Americans are uninsured.1 Many employers face significant barriers to providing health insurance to these employees, including high costs, limited budgets, and inadequate administrative and supporting resources. These challenges can make it difficult for employers to offer affordable and comprehensive coverage to all employees, leaving many working Americans without access to essential health care. As a result, both employees and employers suffer, with employees facing impacts to their well-being and that of their families, and employers having far-reaching consequences including reduced productivity, increased turnover, and decreased competitiveness in the labor market.
Employers can play an important role in addressing this problem by helping employees access health insurance. Whether by offering a robust employee-sponsored health plan or by providing resources to help employees engage and navigate the health care system individually, employers can break down barriers and boost business productivity.
Designing health benefit packages that work for employees and employers
Evaluating the pros and cons of different benefit packages and funding arrangements tailored to your employee population should be a key part of a business growth strategy. By partnering with an experienced agent or broker, employers can navigate the dynamics of funding arrangements and plan options, to design a smart health benefit approach that is a win-win for employees and employers.
For employees, access to quality, affordable health insurance means they can receive regular medical care, mental well-being support, preventive care and manage chronic conditions. This leads to improved health outcomes, improved employee morale, increased productivity, and reduced absenteeism for the business. For employers, offering the right health insurance options can be a powerful recruitment and retention tool, helping to attract and retain top talent in a competitive job market. Diving deeper, the right benefit package can serve as a valuable extension of care for employees, increasing the likelihood utilization and ultimately contributing to long-term sustainability of the business.
Employers can consider an employee benefit survey to identify needs and concerns of uninsured employees. This can be key to designing a comprehensive benefit package that meets the desires of the workforce and aims to control cost for the business over time. Considering options with tailored value-added benefits, vision, dental, high-deductible plans, health savings accounts (HSAs), and flexible spending accounts (FSAs) can give employees more choices and flexibility.
By prioritizing employee satisfaction and well-being, employers can reap the benefits of a happy, healthy, and engaged workforce, which can drive productivity and produce positive impacts on the bottom line.
Educating employees on affordable individual health insurance options
For businesses that cannot offer an employee-sponsored benefit package, providing access to educational resources on health care and the individual self-funded Health Insurance Marketplace, can be a valuable alternative. This alternative demonstrates a commitment to supporting the well-being of working uninsured employees.
Helping employees navigate the Marketplace, including access to insurance brokers, agents or educators, can enable them to understand their options, maximize savings, compare plans, and make informed decisions about their health insurance coverage. Florida Blue’s part-time worker program is a successful example, providing tailored solutions that support all employees, full-time and part-time, with minimal administrative burden. They note “We partner with employers to develop health solutions that demonstrate a genuine commitment to the well-being of their employees,” says Phillip Lee, Florida Blue West Florida Market President.
By partnering with the right health insurer, employers can positively impact employee engagement simply by empowering employees in understanding their options. Additionally, employers can also offer financial support, such as premium reimbursement or health reimbursement arrangements (HRAs), to help employees pay for their health insurance premiums.
The benefits of employee-funded health plans
Self-funded options through the Marketplace offer a range of benefits for employees, including:
- Affordability: Marketplace plans allow qualified employees to receive tax credits that lower their monthly plan premium payments.2 9 out of 10 people in Florida with Marketplace plans were offered financial help in 2023.3
- Flexibility: Employees can choose from a range of plan options, including catastrophic plans, metal plans, dental, and vision, which can be tailored to meet their unique needs.
- Portability: Marketplace plans are portable, meaning employees can take their coverage with them if they change jobs or move within their county.
Healthy employees, stronger business
The benefits of employer-supported health insurance are clear. By offering well-rounded group insurance plan options or educating employees on self-funded options available through the Marketplace, employers can make a significant impact in helping their working uninsured employees obtain health insurance. This not only improves the health and well-being of employees but creates a more engaged and productive workforce.
References:
1Kaiser Family Foundation. (2020). Key Facts about the Uninsured Population. Retrieved from https://www.kff.org/uninsured/issue-brief/key-facts-about-the-uninsured-population/
2HealthCare.gov. (n.d.). Affordable Care Act (ACA) Marketplace. Retrieved from https://www.healthcare.gov/glossary/affordable-care-act/
3Centers for Medicare & Medicaid Services. Health Insurance Exchanges 2023 Open Enrollment Report. CMS.gov, 2023. https://www.cms.gov/files/document/health-insurance-exchanges-2023-open-enrollment-report-final.pdf.
