‘Unaffordable’: Why 45% of employees didn’t enroll in health care benefits

Most companies offer more than one type of medical plan for their employees, with almost half providing four or more types — including Preferred Provider Organization (PPO), High Deductible Health Plan (HDHP), and Health Maintenance Organization (HMO). But that doesn’t always translate to more employees enrolling in different options. According to a new report from Alight Solutions, a cloud-based human capital technology and services provider, only 16% of workers chose a different medical option in 2023 than the one they had in 2022.

Alight’s 2023 “Benefits and Enrollment Trends” report provides an in-depth look at some of the key benefits employers offered to their workforce for 2023 and how employees enrolled in those benefits during the fall 2022 annual enrollment season.

Researchers also found that employee income and age play major roles in medical-benefits decisions, noting that HDHP and Health Savings Account (HSA) plans are more attractive to and benefit some employees more than others — including those who earn more than $100,000 per year. On the other hand, employees earning less than $40,000 have the lowest enrollment rate for medical at 56%, and medical enrollment has significantly declined year-over-year for employees earning less than $60,000.