Millennials buck the generational trends of HDHP enrollment
Overall, lower-wage earners are opting for higher-cost PPOs, according to the second annual State of Employee Benefits report from Benefitfocus. However, this trend is not taking place among millennials. The report shows that millennials are instead adopting high-deductible health plans (HDHPs) at a higher rate than other generations.
The contrast in plan selection between generations might suggest that employees need guidance on how to select a plan that complements their financial situation. From the perspective of Benefitfocus, financial wellness and education from employers is becoming more crucial—and was listed as one of the report’s three key takeaways.
The takeaway highlighted that employers continue to make changes to their plan designs to help shift costs. While these changes make economic sense for employers, they're resulting in higher costs for employees—with both premiums and deductibles increasing. This is particularly burdensome for those enrolled in HDHPs, which further adds to the need for employers to help employees understand how to manage their financial responsibilities.
“Employers must educate employees on financial wellness, and show them the most cost-effective ways to use their available benefits, including health spending accounts, voluntary income protection benefits, and other products and programs that supplement medical coverage and promote financial wellness, such as digital health, retirement planning and debt management.”
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View the report: The State of Employee Benefits
View the article: Young Millennials Drive HSA Growth