COLUMBUS, Ga., Sept. 13, 2011 /PRNewswire/ -- As fourth-quarter
open enrollment period rapidly approaches, new research shows more
than three-quarters (76 percent) of American workers(1) who make
decisions about benefits coverage during open enrollment admit to
making mistakes about their benefits decisions. In addition, 42
percent of workers say they have wasted money each year because of
mistakes they made with their insurance benefits and more than
four-in-five of them say they are at least somewhat concerned about
the possibility of an unexpected medical expense, considering their
current financial situation.
These new findings are part of the Open Enrollment Survey of the
Aflac WorkForces Report, an online survey of 2,220 U.S.
adults ages 18+, of whom 980 were employed full/part time and
responsible for insurance decisions, conducted in August 2011 by Harris Interactive on behalf of
Aflac, the No. 1 provider of supplemental and guaranteed-renewable
insurance in the U.S. Among other key discoveries, the study
uncovers the primary ways Americans make costly mistakes in
benefits decisions and reveals the impact Americans' concerns about
unanticipated out-of-pocket expenses are having on their
lifestyles.
"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," said Audrey
Tillman, executive vice president of Corporate Services at
Aflac.
For example, in terms of cost-bearing mistakes and their
consequences, 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. As a result of paying unexpected out-of-pocket medical
costs, 65 percent of workers have had to make sacrifices, including
cutting back on social activities (40 percent), luxury items (34
percent), purchasing gifts (29 percent) and taking a vacation (28
percent). Others admitted to working more hours (21 percent),
creating a strict household budget (21 percent), and increasing use
of credit cards or line of credit (19 percent).
Seventy-four percent of workers say that when thinking about
their choices for major medical insurance coverage, they only
sometimes or rarely or never understand everything that is covered
by their policy — while slightly more than half (59 percent) of
workers who choose the same benefits year after year say they only
sometimes or rarely or never have a full understanding of the
changes in the policies each year. Although most do not fully
understand their health care insurance policies, workers are
worried about unexpected medical expenses. In fact, 83 percent of
workers say 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.
"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," said Tillman.
To see this year's inaugural study results and learn more about
how individuals are vulnerable because of inadequate benefits
choices, and how they can better protect themselves and their
families against the unknown, visit
AflacWorkForcesReport.com.
About the Aflac WorkForces Report
The Aflac WorkForces Report is an annual study analyzing the
forces impacting the trends, attitudes, and use of employee
benefits. Surveying both American workers and business decision
makers, the Aflac WorkForces Report reconciles the perceptions and
realities of benefits in the workplace. The insights aim to help
businesses make informed decisions about benefits to better protect
employees and their bottom line.
Methodology
This survey was conducted online within the United States by Harris Interactive on
behalf of Aflac from August 11-15,
2011, among 2,220 adults ages 18 and older, of whom 980 were
employed full/part time and responsible for insurance decisions.
This online survey is not based on a probability sample and
therefore no estimate of theoretical sampling error can be
calculated. For complete survey methodology, including weighting
variables, please contact Aflac Media Relations at
mediarelations@aflac.com or 706.243.5543.
About Aflac
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For more than 55 years, Aflac insurance policies have helped
provide a safety net and have given policyholders the opportunity
to focus on recovery, not financial stress. In the United States, Aflac is the number one
provider of guaranteed-renewable insurance. In Japan, Aflac is the number one insurance
company in terms of individual insurance policies in force. Aflac
insurance products provide protection to more than 50 million
people worldwide. For five consecutive years, Aflac has been
recognized by Ethisphere Magazine as one of the
World's Most Ethical Companies and by Forbes magazine as one
of America's Best-Managed Companies in the Insurance category. In
2011, Fortune magazine recognized Aflac as one of the 100
Best Companies to Work For in America for the 13th consecutive
year. Also, Fortune magazine has included Aflac on its list
of Most Admired Companies 10 times. Aflac Incorporated is a Fortune
500 company listed on the New York Stock Exchange under the symbol
AFL. To find out more about Aflac, visit aflac.com or
aflacenespanol.com.
(1) For the purposes of this survey, workers are defined as U.S.
adults employed full/part time and responsible for insurance
decisions.
(Logo: http://photos.prnewswire.com/prnh/20100423/CL92305LOGO
)
Media Contact:
Cathleen Bleers
Hill & Knowlton
312.255.3123
cathleen.bleers@hillandknowlton.com
SOURCE Aflac