3 Surprising stats about group health insurance

Most people know that group health insurance is a type of coverage provided by an employer or other professional organization such as a union. However, some facts may surprise you about this popular employee benefit — and especially about group health insurance for small businesses. 

Here are three surprising stats that you may not be aware of. They can give you more insight into the state of the insurance market, beyond just looking at what a group health plan is.

1. Small business employees have less access to employer healthcare coverage than workers at medium or large firms

Although health insurance is an in-demand workplace benefit, many small employers don't offer it.

In fact, data from the U.S. Census shows that only 51.2% of employees at small firms (businesses with fewer than 50 employees) have access to employer-sponsored healthcare coverage. This puts small employers at a significant disadvantage compared with their larger competitors, as 86% of employees at all companies can get health insurance through their employer. 

Understandably, smaller employers are less likely to provide employer-sponsored coverage. Aside from the significant cost of offering subsidized premiums, getting a health insurance program up and running as a smaller company can require a lot of administrative work. With fewer workers to cover, these costs may not feel justified.

The good news is that there are cost-effective and simple options available so companies of any size can provide employees with insurance benefits. An Individual Coverage Health Reimbursement Arrangement (ICHRA) is a great option for smaller businesses as it allows employers to set a budget to help their staff buy qualifying individual coverage on the open market.

With services like Thatch, small companies can set up their health insurance coverage for small businesses in just a few minutes. You specify what subsidies you want to provide, and Thach helps members choose their plans and spend their money. 

Offering an ICHRA can make small companies much more competitive in hiring. Employees can use their subsidy to find a plan that meets their family’s needs — and can even spend any leftover money on qualifying medical expenses if they prefer a policy with lower premiums. 

2. 16% of U.S. workers stay at a job they don't want in exchange for health benefits

It's not surprising that workers want access to business group health insurance or some other type of employer-provided coverage, but it may come as a shock just how important good coverage is. A Gallup poll found that 16% of U.S. workers stay at a job they don't want solely because of the health insurance the job offers.

This data underscores just how important insurance benefits can be as a motivating factor for workers.  Having good coverage is seen as so valuable that one in six is willing to put up with working conditions that make them unhappy just to keep access to the coverage they need.

Surprisingly, this includes workers at all income levels. In fact, while 28% of people with incomes under $48,000 said they stay at a job that leaves them unsatisfied just for insurance, 20% of people with incomes above $120,000 also said the same. 

Those higher-earners would likely have more career opportunities and a greater ability to buy individual health insurance coverage. However, they still feel their workplace health benefit is important enough to dictate their career path.

This should make clear just how important it is for employers to offer insurance coverage that staff members are satisfied with. Those who would remain at a bad job just for insurance are very unlikely to consider any position that doesn't help them establish a policy. 

3. 75% of workers are happy with their employer-provided insurance coverage 

Worker satisfaction with employer-provided plans, including business group health insurance, is likely one reason so many employees consider access to coverage essential. Benefits Pro revealed that 75% of all Americans — or 180 million people — are happy with their employer-provided plans. This may come as a surprise given the frequent government and press focus on problems within the U.S. insurance system. 

The high levels of satisfaction with employer-provided coverage should be encouraging to companies as it demonstrates that their investment of time and money in providing this benefit has paid off

Of course, this still means a quarter of Americans are dissatisfied. Employers can bring this number down by ensuring they offer flexible, affordable options that meet the needs of their staff. ICHRAs make this easy as workers can shop for their coverage and choose any qualifying plan they prefer. 

If you are interested in establishing or managing an ICHRA, Thatch can simplify the process so benefits management becomes effortless. Our platform also makes it simple for employees to access their benefits, which should improve their satisfaction with the coverage you offer. 

To learn more, schedule your free demonstration of Thatch today to see how we can make offering a group health plan easier than you imagined it could be.