A new study found that employer-sponsored health insurance is the way most Americans want to get their coverage. Fortunately, most of the workforce’s preferences align with how they get their health plans: through their job.
“According to the latest Kaiser Family Foundation Study (2022), 89% of all workers nationally are employed by a company that offers health benefits to at least some of its employees,” Joe Greenberg said. He’s the Vice President of Commercial and Specialty Business at Blue Cross Blue Shield of Arizona (BCBSAZ).
A closer look at the numbers:
“While only 47% of employers with 3-49 employees offer health benefits, 93% of employers with 50 or more employees offer health benefits. The trends are a bit different here in Arizona,” he continued.
How do the national trends compare to Arizona?
We sat down with Joe to answer this question and more to give Arizona businesses insights on today’s market. We cover all the bases, from the top benefits employees are seeking to customizing plans based on profession.
Q&A
Q: The pandemic fundamentally changed how we work and think about our health. Have you seen an uptick in businesses reaching out to consider offering their employees health insurance?
A: For many years, health insurance was a top priority for employers to attract and retain talent. Industry data shows that nationally in 2022, 98% of employees who work for companies with more than 50 employees were offered health insurance, whereas only 58% of employees who work for companies with 3-49 employees were offered benefits. These metrics are down from 2021. Here in Arizona, we have experienced consistent and very high offer rates for employers with more than 50 employees but, unlike the national trend, we are seeing many new small businesses offer health insurance that were not offering coverage before. In 2022, roughly 30% of our small business new sales (employers with less than 50 employees) were from groups that did not offer health insurance in prior years.
Q: What other changes have you seen in the employer-sponsored health insurance landscape?
A: Our research suggests that employees now have baseline expectations for the health insurance products their employer offers, and they desire mechanisms to engage and take control of their health. We have also experienced many employers demanding more of their health insurers. Their desires have evolved beyond basic professional and inpatient coverage to specific needs that best support their workforce. Examples include behavioral health, cancer, diabetes, wellness, condition management, and consumer capabilities.
Q: What are some standout benefits trends you’re seeing in today’s market?
A: We have been researching this quite a bit as we want to ensure the products and services we offer meet the needs of our customers and members. The top items we are tracking include behavioral health, diabetes, musculoskeletal, opioid addiction, cancer, gender, and wellness benefits. I am proud that BCBSAZ has taken steps under the leadership of Dr. Cara Christ, our Chief Medical Officer, to bring to market robust solutions for these specific conditions and make a difference not only for our membership base but for all Arizonans.
Q: How important is offering health insurance when it comes to attracting and retaining talent?
A: Given healthcare costs are typically one of the most expensive items households deal with, it is imperative that employers offer competitive pay, a flexible work environment, and strong benefits to protect their employees and their families in times of need. For many years there were rumors that employers may stop offering health insurance to their employees and simply give them a stipend, which the employee could use to purchase healthcare on their own. That has not panned out. Today, most employees receive their healthcare through their employer. In certain competitive industries, like tech, medical, and pharma, exceptional healthcare coverage with little to no employee cost share is essential to winning top talent. Let’s face it, if someone was evaluating two similar jobs, all things equal, and one had excellent health insurance and the other had mediocre health insurance, the former will win every time.
Q: Can BCBSAZ customize health plans to cater to different industries?
A: We can, and we do! In early 2021 we identified a need to get more focused on specific industries to grow our membership base and market share. Industries such as education, municipalities, and healthcare are our initial priorities. Each of these industries has its own needs and characteristics. Think about it. If we were targeting transportation or construction where employees drive or build homes all day and often experience back pain, we might offer a product with great musculoskeletal benefits. For firemen and firewomen, we may offer broad respiratory coverage. And we need to think broader than just the core workers in each industry. For example, if we are offering unique benefits and programs to educators, we need to design products and services that meet not only their specific needs but also those of the administrators, counselors, nurses, etc. The way we reach these industries often varies as well – using brokers, trusts, consultants, direct-to-employer, etc.
Q: How is BCBSAZ’s local status and more than 80-year history beneficial to employer groups seeking health insurance?
A: I was told early in my career that those who work in health insurance have the opportunity and risk of impacting two of the most critical items in a person’s life: their health (or that of a loved one) and their financials. Get one or both wrong, and it can be devastating. Get them both right, and you can positively impact someone’s life forever. When consumers must choose a product or service close to their heart, it’s important that the company and brand have real meaning. Brand, reputation, and history all help demonstrate our commitment to our members. The great coverage and service we have provided for decades give consumers the foundation they want behind them in a time of need. During my time at BCBSAZ, I have personally seen our brand, local status, and reputation at work numerous times as employers throughout the state choose us to protect their employees’ healthcare needs. We should be very proud of our history and what we stand for!
Q: Will BCBSAZ be there every step of the way for employer groups when making important health plan decisions?
A: It is always our goal to support employer groups and our members in their healthcare journey. Whether they want to offer exceptional healthcare products and services or use them at the right point in time, BCBSAZ strives to partner with and support all our constituents along their journey. Our teams of sales, account managers, and customer service associates are seen as the best in the industry, and they do a phenomenal job helping our brokers, employer groups, and employees navigate their healthcare needs. We are all encouraged to keep a pulse on the market and an ear out for our members to ensure we keep evolving to meet our customers where it matters most to them.