COLUMBUS, Ga., June 29, 2016 /PRNewswire/ -- Aflac, the
leading provider of voluntary insurance sales at the worksite in
the United States, today announced
results from the 2016 Aflac WorkForces Report, revealing how
millennials are more likely to embrace a nontraditional approach to
pay their medical expenses compared to older generations. They also
are more likely than non-millennial generations to regularly
underestimate the total cost of health care issues.
The online study, conducted by Lightspeed GMI on behalf of Aflac
between January and February 2016,
surveyed 1,500 benefits decision-makers and 5,000 employees at
small, medium and large companies from across the United States.
"Employer-sponsored health care coverage is essential for
employees," Aflac Senior Vice
President and Chief Human Resources Officer Matthew Owenby said. "But as costs continue to
rise, the younger generations appear more likely to tackle health
care-related financial issues by means that older generations would
not consider, including crowdfunding."
Millennials willing to consider options for covering medical
costs
In the midst of rising health care expenses, the Aflac study
revealed that millennials (ages 18 to 36) are more likely than
non-millennial generations to regularly underestimate the total
cost of an injury or illness, including medical, household and
out-of-pocket costs (66 percent vs. 45 percent). And 65 percent say
if they had an unexpected out-of-pocket expense, they could afford
less than $1,000. They are also more
inclined than older generations to try unconventional means such as
borrowing from friends or family and crowdsourcing to pay for
out-of-pocket health care expenses.
"Millennials' resourcefulness in trying alternate means to cover
health care costs illustrates their deep concern for financial
safety in the event of an unexpected injury or illness." Owenby
said. "But the bottom line is that they tend to be both financially
strapped and less aware of the potential costs of an accident or
illness. We need to do a better job in educating them about how
voluntary insurance can provide solutions for those who are looking
to avoid a crippling debt."
Voluntary insurance helps boost employee satisfaction
Although health care reform may have helped expand access to
affordable health care, out-of-pocket costs can still be
substantial. For example, the out-of-pocket limits for 2017 are
$7,150 for individual coverage and $14,300 for family coverage,
making added insurance protection like voluntary insurance
increasingly relevant to help pay out-of-pocket costs.
Voluntary insurance includes coverage such as accident,
disability, critical illness, hospital and much more. Unlike major
medical insurance, voluntary insurance policies pay cash directly
to the policyholder, unless otherwise assigned, when they are sick
or injured to help cover unexpected out-of-pocket costs. Nearly 4
in 5 employees (79 percent) see a growing need for voluntary
insurance today compared to last year. And of those, 60 percent say
it's driven by the rising cost of medical services.
Employees who were offered voluntary benefits options at work
reported higher levels of satisfaction with their jobs and their
benefits. Compared to employees who aren't offered these benefits,
employees whose worksite offered voluntary benefits are more likely
to say:
- They are prepared1 to pay for out-of-pocket expenses
not covered by major medical/health insurance related to an
unexpected serious illness or accident (73 percent vs. 56
percent).
- They are extremely or very satisfied with their jobs (73
percent vs. 57 percent).
"Whether employees are creating a crowdfunding page or saddling
themselves with credit card debt, one thing is clear: No one group,
whether millennials or older generations, is adequately prepared
for a potential health care crisis," Owenby said. "A robust
benefits package that includes major medical and voluntary
insurance is more important than ever to ensure workers are
financially secure. It will not only help provide peace of mind,
but also will help workers continue to serve as significant
contributors in the workplace."
About the Aflac WorkForces Report
The 2016 Aflac
WorkForces Report is the sixth annual Aflac study examining
benefits trends and attitudes. The study, conducted by Lightspeed
GMI, captures responses from 1,500 benefits decision-makers and
5,000 employees across the U.S. in various industries. To learn
more, visit AflacWorkForcesReport.com.
Methodology
Conducted by Lightspeed GMI on behalf of
Aflac, the research contained two components – employer research
and employee research. The Employer Survey was conducted online
within the United States between
Jan. 11, 2016, and Feb. 11, 2016, among 1,500 benefits
decision-makers at companies with at least three employees. Results
were weighted to enable year-over-year trending. No estimates of
theoretical sampling error can be calculated; a full methodology is
available.
The Employee Survey was conducted online within the United States between Jan. 20, 2016, and Feb. 3,
2016, among 5,000 adults ages 18 and older who are employed
full or part time at a company with three or more employees and are
not retired. Results were weighted to match U.S. demographics. No
theoretical sampling error can be calculated; a full methodology is
available.
About Lightspeed GMI
Lightspeed GMI is an
award-winning global digital data collection enterprise. Founded in
1996, its innovative technology and proven sampling methodologies
deliver operational excellence throughout the online research
process. With more than 5.5 million online research respondents in
45 countries, Lightspeed GMI's proprietary panels deliver
unparalleled quality, capacity and targeting. Headquartered in
Warren, New Jersey, Lightspeed GMI
is part of the Kantar, the data investment management arm of WPP,
the world leader in marketing communication services. For more
information, visit www.lightspeedgmi.com.
About Aflac
When a policyholder gets sick or hurt,
Aflac pays cash benefits fast. For six decades, Aflac insurance
policies have given policyholders the opportunity to focus on
recovery, not financial stress. In the
United States, Aflac is the leading provider of voluntary
insurance at the worksite. Through its trailblazing One Day
PaySM initiative, Aflac U.S. can receive, process,
approve and disburse payment for eligible claims in one business
day. In Japan, Aflac is the
leading provider of medical and cancer insurance and insures 1 in 4
households. Aflac individual and group insurance products help
provide protection to more than 50 million people worldwide. For 10
consecutive years, Aflac has been recognized by Ethisphere as one
of the World's Most Ethical Companies. In 2016, Fortune magazine
recognized Aflac as one of the 100 Best Companies to Work For in
America for the 18th consecutive year and included Aflac on its
list of Most Admired Companies for the 15th time, ranking the
company No. 1 in innovation for the insurance, life and health
category for the second consecutive year. In 2015, Aflac's contact
centers were recognized by J.D. Power by providing "An Outstanding
Customer Service Experience" for the Live Phone Channel. Aflac
Incorporated is a Fortune 500 company listed on the New York Stock
Exchange under the symbol AFL. To find out more about Aflac and One
Day PaySM, visit aflac.com or espanol.aflac.com.
Logo -
http://photos.prnewswire.com/prnh/20100423/CL92305LOGO
Media contact – Jon Sullivan,
706.763.4813 or jsullivan@aflac.com
Analyst and investor contact – Robin Y.
Wilkey, 706.596.3264 or 800.235.2667, FAX: 706.324.6330, or
rwilkey@aflac.com
1 Respondents who indicated they are somewhat, very,
or extremely prepared.
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SOURCE Aflac