More than half of employees waste money because of benefit election mistakes
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2012 Open Enrollment Survey found that 56 percent of employees waste up to $750 annually because of mistakes made with benefits elections. The study was part of the Aflac WorkForces Report, a study of 2,500 U.S. consumers. Some other key findings included:
- 16 percent of employees felt confident they were not making mistakes during the enrollment process.
- 24 percent felt they had previously chosen the wrong level of insurance coverage for their needs, such as failing to select plans with appropriate premium and deductible levels—higher-deductible plans typically have lower premiums.
- 16 percent felt confident they were not making mistakes during the enrollment process, revealed the survey.
The survey found that many employees still receive too little education or communications related to their benefit selections, which in-turn causes mistakes in their selections specific to their needs. Among their most common mistakes:
- 89 percent of employees simply elect the same benefits options every year.
- 61 percent are only sometimes or not at all aware of changes to their policies each year.
- Only 16 percent were confident that they contributed the right amount to flexible spending accounts.
(Photo credited to blogspot.com)
DISCLAIMER: Because of the generality of this update, and based on particular situations, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice, financial advice and/or the advice of a licensed insurance or certified human resource professional.
© Connelly, Carlisle, Fields & Nichols 2012