Accenture asked 2,709 employees about how they view their existing health coverage. Most workers (82 percent) reported high levels of satisfaction with their employer-sponsored healthcare. Further, 76 percent of workers see health insurance as a primary or important factor for continuing to work at their current employer. An overwhelming majority (94 percent) are confident that their employer will continue to provide health coverage.
When survey respondents were told, hypothetically, that their employer would no longer provide a group health insurance benefit, 64 percent expressed dissatisfaction with their employer’s handling of the situation. When faced with the prospect of losing their employer-sponsored insurance, many workers expressed the desire to find a new job, and 15 percent said they would plan to leave their job immediately. Nearly one third (32 percent) declared they would be less motivated to work hard.
For a firm with 1,000 employees earning an average salary of $50,000, turnover costs alone could climb to more than $3 million1 in the first year. Employers must carefully consider whether health insurance cost savings outweigh corresponding turnover and productivity losses.
1. Calculation based on average turnover costs of 20% of salary. Source: There are Significant Business Costs to Replacing Employees, Center for American Progress, November 2012.
Employers are beginning to consider alternatives to employer-sponsored health insurance. Some may discontinue group health coverage for segments of their workforce, while others may drop health coverage entirely.
An overwhelming majority (94 percent) of workers are confident that their employer will continue to provide health coverage. When faced with the prospect of losing their employer-sponsored insurance, many workers expressed the desire to find a new job.
Even without employer funding, workers indicated a strong preference for employer involvement. Respondents with no financial support were more than three times more satisfied on an employer-curated individual marketplace than when left on their own.
Employers must carefully consider whether health insurance cost savings outweigh corresponding turnover and productivity losses. Health insurers and brokers / benefits consultants should also consider these findings when structuring their clients’ health programs.
See data that reveals how employees feel about employer-sponsored insurance.
View percentages of employees who would leave their job, be less satisfied or absent more often.
See the various healthcare coverage payment and support scenarios that employees were presented.