Study: Insurance Benefits Befuddle Workers

New research from supplemental insurer provider Aflac shows that open enrollment periods are a source of confusion for American workers.

Conducted in 2011 by Harris Interactive on behalf of Aflac, the survey of 2,220 U.S. adults found that 76 percent of American workers who make decisions about benefits coverage during open enrollment admit to making mistakes about their benefits decisions Moreover, 74 percent of acknowledged say that they only sometimes or rarely or never understand everything that is covered by their medical insurance coverage. One consequence of workers not fully understanding their health care insurance policies is fear of unexpected medical expenses. In fact, 83 percent of respondents indicating that they are at least somewhat concerned about the possibility of an unexpected medical expense, with 30 percent saying they are extremely/very concerned, considering their current financial situation.

 “Far too many American workers are making avoidable mistakes in benefits coverage decisions — from not meeting deductible amounts to contributing too little to Flexible Spending Accounts — and, as a result of their lack of understanding or confusion, they often pay a price in multiple ways,” says Audrey Tillman, EVP of Corporate Services at Aflac.

In terms of cost-bearing mistakes and their, the most common include not electing available benefit coverage such as vision, dental or voluntary, choosing the wrong level of coverage and putting too little in flexible spending account.

“While workers certainly need to invest more time in making better educated decisions, employers can help by understanding workers’ most common mistakes, explaining their impact, and offering best-practice solutions,” Tillman adds.