CHARLESTON, S.C., April 4, 2018 /PRNewswire/ -- Benefitfocus, Inc. (NASDAQ: BNFT), the leading provider of cloud-based benefits management software, today released its "State of Employee Benefits 2018 – Regional Edition" report, a snapshot of real, but anonymized employee benefit election data from 540 employers on the BENEFITFOCUS® Platform representing 1,281,447 individual consumers, broken out by U.S. Census region.
The data reveals benefit offering and adoption trends throughout the country related to health plan enrollment, voluntary benefits adoption and employer and employee HSA (Health Savings Account) contributions. These are valuable insights not only to employers looking to strengthen their benefits offerings ahead of Open Enrollment season, but also brokers who advise their employer clients on refining their benefits strategies and plan design.
"In today's competitive employment environment, where satisfying consumer preferences is key, attractive benefits can make the difference between whether a prospective employee accepts a job offer or not," said Benefitfocus CEO Ray August. "This regional data helps employers understand how they stack up against others in their area, and how brokers can advise their clients on which benefit offerings and elections are trending so they can be more competitive."
The State of Employee Benefits Regional data echoes many of the broader themes from the main State of Employee Benefits report, released by Benefitfocus earlier this year. Specifically, employees are embracing HSAs, and participation among eligible employees – those in High Deductible Health Plans – grew by more than 60 percent, from roughly 50 percent in 2017 to 81 percent in 2018. Voluntary benefits are also on the rise as employees gain understanding of how they can address many of their diverse needs, from critical illness to legal insurance, identity theft protection and pet insurance.
A sampling of region-specific data includes:
West leads in HSA contributions, corresponding with rising HDHP offerings
- Since 2016, HDHP offering rates have increased 76 percent in the West.
- Employees in the West made and received the highest HSA contributions, with employee contributions averaging $1,490 and employer contributions averaging $750 for individual plans, up 11 percent from 2017 and 19 percent from 2016.
- Employers in the West offer the most choice in voluntary benefits, such as accident, critical illness and/or hospital indemnity insurance.
Midwest leads in HDHP offering and adoption rates
- HDHPs are most prevalent in the Midwest, where 70 percent of employers offer them alongside traditional health plans, up from 46 percent in 2016.
- 37 percent of Midwestern employees selected an HDHP, the highest adoption rate in the country.
- Employees in the Midwest pay the lowest PPO premiums in the country, at less than $1,500 annually for single coverage.
Employees in the Northeast pay the highest premiums
- Employees in the Northeast pay the most for their health plan premiums, both for PPOs ($1,692 for single coverage plans) and HDHPs ($1,237). That's 10 percent more for PPOs and 14 percent more for HDHPs than the nationwide average on the Benefitfocus Platform.
- The average employer HSA contribution (single coverage) has increased 10 percent year over year.
South leads in voluntary benefit choice growth, but pays highest deductibles
- Southern workers carry higher-than-average financial responsibility for their health plans, paying the steepest PPO and HDHP deductibles in the country— $1,300 and $2,416, respectively, for single coverage. That's 28 percent higher than the nationwide average for PPOs and 11 percent higher than the nationwide average for HDHPs.
- Since 2016, there's been a 138 percent increase in the share of employers offering at least three voluntary benefits, giving Southern employees a greater opportunity to supplement their core medical coverage.
For more findings, download the full report here.
Benefitfocus (NASDAQ: BNFT) provides technology and services that improve the way employers of all sizes manage their benefits investment. Through a combination of powerful cloud-based software, data-driven insights and thoughtfully- designed services, we provide employers, their brokers and insurance carriers with a single partner to deliver a world-class benefits experience. 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 or performance might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: our ability to compete effectively; management of growth; reliance on key personnel; our ability to maintain our culture and recruit and retain qualified personnel; 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; fluctuations in our financial results; general economic risks; 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-filings 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.
SOURCE Benefitfocus, Inc.