More targeted programs needed for those in poor health, low income

While the economy has wrought havoc on many plan members’ retirement savings, it seems it has been a positive for benefits plans. Three-quarters of respondents in the 2010 sanofi-aventis Healthcare Survey said the recession increased the value they place in their benefits plans.

While the economy has wrought havoc on many plan members’ retirement savings, it seems it has been a positive for benefits plans. Three-quarters of respondents in the 2010 sanofi-aventis Healthcare Survey said the recession increased the value they place in their benefits plans.

This was just one of the findings that were discussed at the October 14 sanofi-aventis Roadshow event at the Sutton Place Hotel in Toronto.

The survey also indicated that benefits plans play an important role in employee retention; two-thirds of participants say their benefits are a strong incentive to stay with their current employer, and two-thirds also say they think of their employer more positively because of the benefits plan.

Low-income and poor health
While most employees appreciate and value their benefits plans, the statistics are different when it comes to low-income employees (those earning less than $30,000) and those who consider themselves in poor health.

While only 39% of plan members overall reported that they had experienced at least one concern with their health benefits in 2009, among those who described themselves to be in poor or very poor health, this number increased to 59% in the 2010 survey.

The biggest concern of members overall was the cost of health benefits (17%), but this nearly doubled (to 31%) for those in poor health.

In fact, while only 9% of plan members chose not to purchase a prescription after learning it wasn’t covered by their benefits plan (compared with 8% last year), this statistic jumps to 23% for low-income earners.

Chris Bonnett, president of HC Consulting and member of the survey’s advisory board stressed that there is still work to be done to tailor benefits to make them more accessible for these groups.

The survey also looked at wellness programs, communication and education and prescription drug coverage.

The sanofi-aventis Healthcare Survey polled more than 1,500 participants from mostly large unionized employers in January 2010. Download the survey here.