New survey results from Mercer show employees are willing to take on higher out-of-pocket costs if it means they get to keep their health benefits.

According to findings from the HR consulting firm’s 2011 Workplace Survey, employer-sponsored health care continues to be a critical component of the overall benefits offering. Even as health care costs continue to rise, employees appear ready to accept changes to the employer-employee cost sharing model.

This year, almost half (44 percent) of employees reported that they were asked to pay more for health benefits in the last 12 months. Yet, 46 percent said their health benefits are “definitely worth” the cost (up from 38 percent in 2010).

And as employees consider what impact health reform might have on their health plan changes, 75 percent said they would rather pay more out of pocket than have their health benefits reduced.

Findings from the survey also show benefits play an increasingly pivotal role in the employer-employee relationship. Nearly eight out of 10 employees say their benefits are one of the reasons they work where they do, and almost as many (76 percent) say benefits make them feel appreciated by their company. Both of these results represent significant increases from last year.

And almost all respondents (91 percent) said getting health benefits through work is just as important as getting a salary.

“Employees seem to be turning their uncertainty about the future—both in terms of health care reform and their own job security—into greater appreciation for their benefits and a desire to become more involved in their health care decisions,” says Suzanne Nolan, partner and director of marketing and communications for Mercer’s U.S. outsourcing business. “Employers can build on this momentum by providing the education and programs to encourage informed decision making and health-conscious behaviors.”

Additionally, there is a higher level of participation in programs that encourage personal accountability. Nearly a third of employees say they take advantage of their employer’s wellness program “a great deal,” up from only 23 percent last year, and 26 percent say they take advantage of their employer’s disease management program “a great deal,” up from 15 percent last year.

Perhaps contributing to the growing importance of employer-sponsored benefits is the still uncertain impact of health care reform. While health care reform continues to receive mixed reviews among this insured population, the overall impression is slightly more positive than it was a year ago, the survey suggests.

For example, 29 percent of respondents this year said their health benefits at work will be better off, as compared to 16 percent who believed that in 2010.

More than a third (36 percent) of surveyed employees—double the 2010 level (18 percent)—report their employer has indicated changes in their health plan will occur as a result of health care reform.

“This emerging attitude shift reinforces the need to simplify the complex topic of health care reform and make it more understandable and meaningful for employees, especially as we anticipate the upcoming provisions of health care reform that will need to be implemented in 2014, which will most likely have a more significant impact on a broader number of employees,” Nolan says.

Instant Insights /

Workers embrace higher benefits costs

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