Thanks to the rise of technology, artificial intelligence, and widespread personalization, businesses are truly operating in a consumer-first age unlike any other.
Choice has been hardwired into everything we do—and has become a crucial consideration as you set up open benefits enrollment for your staff. Our partner WEX, recently surveyed nearly 6,000 participants in an employer sponsored insurance plan and found that 23% feel the benefits they’re offered don’t address all of their needs—at a time when benefits are a crucial factor in making employment decisions. On a scale of 1 to 10, ranging from not important when considering a job to extremely important, participants gave benefits a mean score of 9.11, a clear sign that employees need to pay attention to their benefits offerings.
What’s missing from today’s benefits lineup? One common theme among the survey participants is a lack of options. In this article, we break down some of the feedback from those who said their benefits options were inadequate, so you can enter the open enrollment period with confidence—and the best offerings for your team.
Employees desire more deductible options
Health insurance is at the core of any employee benefits plan. When the survey participants were asked what was missing from their benefits, the words “health”, “coverage”, “insurance”, and “deductible” were among the most frequently used. Specifically, these employees want choices, from lower deductibles to copay alternatives, and more information about plan specifics. Their responses included:
- “A lower deductible or copay option would be an improvement.”
- “Deductibles are too high. Wish there were more options.”
- “A better understanding of family deductibles and out-of-pocket max.”
Nearly two-thirds of large employers provide their employees with a choice between two health plans with differing deductibles:
- An HSA eligible health plan, also known as a high-deductible health savings account.
- A traditional health plan with lower deductibles.
However, smaller employers may not have this privilege and can face challenges in providing benefit alternatives, despite employees’ desire for health plan choices.
HSA and FSA plans meet differing employee goals
Similar to the choice between health plans, many surveyed participants told us that they wanted the choice between a health savings account (HSA) and a flexible spending account (FSA) to suit their specific life phases or needs. Participants attested:
- “HSA vs FSA. Myself being a healthy young adult, I would rather have a HSA so I could save the money year over year.”
- "HSA vs FSA. Which is right for me and my family?"
- “I would prefer we had an HSA instead of FSA since the money (in an FSA) doesn’t rollover into the next year.”
For employers seeking to fulfill the desire for FSAs and HSAs, providing an eligible health plan option is an essential step. Participants are only eligible for an HSA if enrolled in an HSA-eligible health plan—namely a high-deductible health plan (HDHP). Compared with traditional health plans, HDHPs typically have lower premiums and higher deductibles, with deductible limits set by the IRS.
Dental and vision care remain priorities
Healthcare plans aren’t the only top-of-mind offering for employees participating in workplace benefits. Dental and vision care have held strong as must-have employer benefits among survey participants. Within employers with a benefits administration, 68% of eligible employees enrolled in vision and 77% enrolled in dental.
However, not all employees are offered these benefits—and even those who receive the offers say they don’t always cover sufficient costs. Speaking to their current offerings and the changes they would like to see, survey participants commented on the missing quality and quantity of their dental and vision options:
- “More options, especially when it comes to dental coverage.”
- “Dental program is not very good.”
- “Ideally, more vision options.”
Wellness benefits improve employee satisfaction and efficiency
Wellness benefits have gained increased importance among employers and employees in recent years—especially since the beginning of the COVID-19 pandemic in early 2020. These benefits can include any wellness programs specifically aimed at improving the mental, physical, or emotional wellness of employees. From mental health counseling to fitness competitions, these wellness activities can increase employee engagement, boost productivity, and reduce burnout.
Tap into a world of benefits options with First American Bank
As employees continue to use benefits to select future employers, First American Bank Health Account Services offers companies large and small a variety of consumer-directed health benefit accounts to attract and retain talent. We’re proud to be recognized by Investor’s Business Daily for providing one of the best HSA accounts of 2023 and offer a platform designed to scale with customer needs and goals. By partnering with First American Bank, you can give your employees the highest-quality terms on their health benefit accounts, satisfy their diverse care needs, and provide your business with crucial tax advantages.
