Employees would love Covid treatment insurance as part of their general benefits, but can SMEs afford that kind of wraparound cover?
Sana, has announced the release of its inaugural 2021 State of Employer Health Insurance Report, a survey of health insurance decision-makers at small and medium businesses. The inaugural Sana survey engaged over 1,000 health insurance decision-makers at small and medium sized businesses.
Designed to address challenges these decision-makers face when managing employee insurance plans, the survey found that many employers have incorrect assumptions about health insurance processes. Many are also unsatisfied with their current course of action for their employees’ health insurance benefits.
These survey results set a benchmark for industry trends and help employers and employees understand how their health care costs stack up to national norms. Key findings include:
Small businesses are hit hard by health care costs. 27% of small businesses see their health insurance costs go up at least 10% per year. With the average cost of insuring a single employee at $7,470, this is a large hit to the bottom line.
87% of health care decision-makers think they are locked into their health insurance contract when it is very rarely the case. If a business is unhappy with its insurance company, it can switch to a new one at any time. The monopolistic nature of health insurance, being dominated by 1-2 companies in any given state, is likely why small businesses don’t switch even when their rates keep increasing year over year.
40% of individuals surveyed haven’t switched health insurance carriers in over five years. If small businesses aren’t at least looking around for other options, they are likely leaving money on the table.
Employees want better mental health benefits. Mental health benefits are taking up a small percentage of health care spending and lag behind dental and vision. Still, the demand is increasing for mental health (including virtual mental health) to be a part of the employer benefits package.
“Small businesses are seeing more and more of their operating budgets depleted by the rising cost of health care,” said Will Young, CEO and co-founder of Sana. “Between industry jargon, misleading myths, and a lack of transparency, it can be difficult to navigate the world of health insurance and employee benefits. We wanted to conduct a survey to better understand the challenges businesses face when it comes to providing health care to the 50% of Americans that depend on their employer health plans.”
To access the full 2021 State of Employer Health Insurance Report, click here.