Participation in high-deductible health plans is highest among Generation Z, a new Benefitfocus report finds
2024 “State of Employee Benefits™ Report” uncovers workplace benefits and savings trends to support the evolving needs of today’s workforce
“As employers evolve their workplace benefits and savings offerings to optimize outcomes and help manage increasing health care costs, the need for a holistic benefits package that supports a diverse workforce is necessary to remain competitive,” said
Across industry research, many findings show health care continues to be one of the most important employee benefits.1 The
Notably, the report shows that participation in HDHPs in 2024 — often coupled with health savings accounts (HSAs) — is highest among Gen Z employees (45%), followed closely by millennials (43%) and Generation X (30%). This data suggests Gen Z’s relatively larger adoption of HDHPs may be a result of younger employees gravitating toward lower premiums (i.e., lower monthly costs of HDHPs) and potentially less financial burden.
The report also finds relatively few employers are offering solely a traditional (15%) or high-deductible health plan (1%), which suggests the need to support an individual’s health care and financial wellness needs influenced by life stage. As a result,
“The decisions around identifying the right benefits at every stage in life is nuanced and personal, and employers have the ability to help meet those specific health care and benefits needs for every employee,” added Frend. “Employers that identify these distinct needs and create a more targeted approach to benefits management, education and communications have the opportunity to attract and retain multigenerational teams and promote better health and wealth for their employees.”
In addition to generational trends, the
- Help employees make optimal health plan selections. More than 8 in 10 employers offer their employees their choice of HDHP and traditional plans. While 64% of health plan enrollees selected a traditional plan in plan year 2024, enrollment in HDHPs is increasing across most generations.
- Offer solutions to help employees across all generations manage health care costs. While employer share of premiums was 78% for plan year 2024, up from 74% in plan year 2022, employees are also faced with higher costs — a challenge that can be addressed by considering generational differences.
- Raising awareness of HDHP and HSAs remains critical. According to Voya research, only 3% of the working Americans surveyed understood the full benefits of HSAs by correctly selecting all options (compared to 2% in 2020), 2 suggesting that employees need more effective education, guidance and support to consider how one choice might impact another.
- Consider voluntary benefits that add value to employees’ whole-person well-being. Employees across all generations are taking advantage of accident, critical illness/specified disease and hospital indemnity insurance, along with ID theft, legal and pet benefits, as some of these more voluntary solutions can help employees minimize the financial impact of specifically covered events, such as an illness or hospitalization.
To view the full report, download a copy of 2024 State of Employee Benefits Report.
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As one of the leading benefits administration companies in the industry,
All data unless noted otherwise can be found in the “State of Employee Benefits™ Report 2024,” which was compiled from enrollment transactions aggregated across 316 large employers (1,000+ full-time employees) within the
1. Forbes Advisor, “Best Employee Benefits in 2024,”
2. Voya Financial Consumer Insights & Research survey conducted with Morning Consult between
3. 1Q 2024 Voya Financial Fact Sheet. Through its insurance companies, Voya is a leading provider of supplemental health insurance in the
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