CHARLESTON, S.C., May 3, 2016 /PRNewswire/ -- Benefitfocus, Inc. (NASDAQ: BNFT), a leading provider of cloud-based benefits management software, today released its "Benefitfocus State of Employee Benefits 2016 – Midsize Employer Edition," a snapshot of real, but anonymous, benefit selection data from over 500,000 consumers across nearly 2,400 midsize employers on the BENEFITFOCUS® Platform. A follow-up to the inaugural study analyzing behavioral data from large employers, it found traditional health plans – primarily PPOs – dominate the mix for midsize employers (87 percent), but when given the choice, over one-third (34 percent) of employees selected an HDHP, with millennials over age 26 the most likely to opt in (40 percent). Forward thinking employers – 13 percent – now offer at least one high-deductible health plan (HDHP).
The data also indicates midsize employers are well positioned to avoid the Cadillac Tax, with no plans reaching more than 60 percent of the penalty thresholds on average. However, health care costs continue to rise and, with traditional plans that do little to discourage overutilization, it may also be in the best interest of midsize employers to consider how well their plan offerings actually fit the health and financial needs of their workforce and to help mitigate over- or underinsurance.
The report shows, regardless of health plan, employees are facing higher out-of-pocket costs, and with copays and coinsurance across both PPOs and HDHPs, the average family could spend nearly 40 percent more on health care in 2016 than food (using U.S. BLS data). To close this gap, many employers are funding health savings accounts (HSAs) and flexible spending accounts (FSAs). Yet adoption is low at both large and midsize companies, as eligible employees contributed on average less than half the maximum amount allowed.
"The report shows HDHPs are being well received, signaling a desire from employees to select plans that fit their lifestyles," said Shawn Jenkins, Benefitfocus CEO. "To attract and retain talent, we'll undoubtedly see employers drive more choice and innovation in the type of benefits they're offering, and the process for plan selection. As this shift toward consumer-driven health plans continues, in what's been a relatively unchanged process for decades, employers must make decision support, education and financial wellness a top priority to help in the transition."
Study Methodology The "Benefitfocus State of Employee Benefits 2016 – Midsize Employer Edition" report analyzed anonymous benefit selection data from Benefitfocus' data warehouse. The report includes data from over 500,000 records during the fall 2015 open enrollment period for approximately 2,400 midsize employers, all with 100-999 full-time employees.
About Benefitfocus Benefitfocus (NASDAQ: BNFT) provides a leading cloud-based benefits management platform that simplifies how organizations and individuals shop for, enroll in, manage and exchange benefits. Every day leading employers, insurance companies and millions of consumers rely on our platform to manage, scale and exchange benefits data seamlessly. In an increasingly complex benefits landscape, we bring order to chaos so our clients and their employees have access to better information, make better decisions and lead better lives. Learn more at www.benefitfocus.com, LinkedIn and Twitter.
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: the need to innovate and provide useful products and services; changes in government regulations; the immature and volatile nature of the market for our products and services and other factors that could impact our anticipated growth; management of growth; fluctuations in our financial results; general economic risks; reliance on key personnel; our ability to compete effectively; our ability to maintain our culture and recruit and retain qualified personnel; privacy, security and other risks associated with our business; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec.cfm or upon request from our investor relations department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.