Open enrollment regret

More than half of Americans (53 percent) eligible for workplace benefits through their employer regret their choices during last year’s open enrollment period, according to recent research from Equitable. The survey of more than 1,000 consumers noted that the top reasons for feeling open enrollment regret include: failing to adjust their benefits to match their lifestyle changes (25 percent), forgetting to make changes to their benefit selections by the deadline (20 percent), and not understanding the options available or the benefits they selected (19 percent). The survey also found that the average amount of time workers spent selecting their benefits during open enrollment last year was 30 to 60 minutes.

More American workers are turning to social media for education on their workplace benefits, which could impact how employers and benefits providers help prepare employees for open enrollment in the future. The survey found that 24 percent of employees use social media platforms for education on workplace benefits. This trend was highest among younger generations, with approximately four in 10 Gen Zers (43 percent) and millennials (37 percent) turning to social media for help gathering information as they make decisions on their workplace benefits during open enrollment.

"Our research suggests that many American workers are second-guessing their benefits selections,” said Stephanie Shields, head of Equitable’s Employee Benefits business. "With open enrollment approaching for millions of households this fall, it's critical that workers review and understand their benefit options, stay mindful of deadlines and consider how recent life changes might influence their benefit choices. Also, if workers need help, they should ask their employer's benefits teams or consult a financial professional, who may be able to address general questions and provide some level of guidance."

Equitable also found that most employees have a knowledge gap regarding voluntary benefits, which are supplemental health solutions that can help pay for out-of-pocket expenses not covered by major medical and other insurance. For example, the survey found that nearly six in 10 respondents indicated they were not confident in their understanding of hospital indemnity insurance. However, once they learned more about the supplemental health benefit, 87 percent of respondents considered hospital indemnity insurance to be valuable.

The survey also revealed that 60 percent of Americans would struggle to cover the total costs of an unexpected hospital stay. On average, the cost of a five-day hospital stay in the U.S. for someone who is insured amounts to approximately $14,000. When asked what sources they would use to cover this unexpected health expense, three-quarters of Americans (75 percent) said they would have to set up a monthly payment plan, nearly one in five (18 percent) said they would use their credit card, and 8 percent would choose to take a hardship withdrawal from their retirement savings account.

The survey results also reinforce the central role that employers play in helping their employees learn and understand their workplace benefits. More than half of employees (53 percent) cited their reliance on materials or information sessions provided by their employers to help them make decisions during open enrollment. Notably, baby boomers (67 percent) and Gen X (60 percent) are more likely than younger generations to use the materials and information provided by their employers.

When it comes to guidance, more than one-third (35 percent) of American workers turn to financial professionals for support when selecting their benefits during open enrollment, with 43 percent of millennials and Gen Z relying on them more than older generations.

“Employee benefits play an important role in the financial lives of American workers and their families by protecting their savings from unexpected health events that could otherwise cause financial strain,” explained Shields. “While most workers rely on their employers for help during open enrollment, it is encouraging to see that younger generations are open to guidance from financial professionals on how workplace benefits fit into a holistic financial plan.”

SOURCE: www.equitable.com

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