Dive Brief:
- Three-quarters of employers believe they’re doing enough to help workers manage medical costs, but fewer than half of employees agree, a Prudential Financial study released Monday found.
- That “highlights a significant disconnect between how employers believe they are supporting employees and how employees say they feel,” per the study.
- More than 7 in 10 workers said they’ve experienced at least a 5% increase in medical costs, and 22% said they’ve faced increases of 15% or more, Prudential found.
Dive Insight:
“Rising medical costs are putting pressure on employers and employees alike, intensifying financial stress across the workforce,” Jon Trevisan, vice president and head of distribution at Prudential Group Insurance, said in a news release. “The most successful organizations will likely take a holistic approach that balances managing costs with delivering meaningful benefits that support overall employee financial health.”
Workers said climbing medical expenses significantly influence their financial stress, mental health and physical health, Prudential found.
Mercer in November predicted that both employers and employees would confront a “healthcare affordability crunch” as costs continue to rise.
In response, some workers are skipping needed care or not taking medications, per a recent ADP report.
The Prudential study had similar findings, showing that 18% of the 3,096 employees surveyed in January have delayed medical care or procedures because of financial stress.
As a result of that financial stress, employers could see lower productivity from workers, increased absenteeism and higher turnover, Prudential said.
Employers could improve how they communicate support to workers, Prudential said. That’s evidenced in the fact that 38% of companies said their benefits package brought greater stability during periods of financial stress in the past year, but only 17% of workers agreed.