Open Enrollment: 2020 Employer Coverage

Open enrollment for 2020 health plan coverage begins on October 1 for many large employers. Employees in Chicago and around the country will be waking up to make one of the most important—and expensive—purchases they make every year.

Who gets employer-based coverage? 160 Americans. They are single adults, couples without kids, single or two parent families with one or more children, and empty nesters who aren’t yet eligible for Medicare.

What drives health plan choice? It depends. Personal circumstances include:

  • Health: Medical condition(s) that affect themselves or a family member
  • Budget: Ability to afford a payroll contribution and out-of-pocket costs
  • Security: Financial protection against a major medical expense
  • Satisfaction: Service issues that affect their ability to access care
  • Providers: Doctors, nurses, and others who have relationships with family members

How much will employees spend? A lot. The Kaiser Family Foundation (1) reported that employees will pay the following in employee contribution (before any out-of-pocket expenses):

  • Single coverage: $1,242 of $7,188 in annual premium
  • Family coverage: $6,015 of $20,576 in annual premium

Many employers will change carriers, reduce benefits, and limit networks, which will also affect how much employees spend on their health care.

What else? Despite cost increases, benefit reductions, and limited choice, the Commonwealth Fund (2) found that many Americans with employer coverage are still happy with it:

  • Highly satisfied: 48%
  • Somewhat satisfied: 38%

At the same time, 29 percent reported being not at all confident or not too confident of their ability to afford care if becoming seriously ill. Ouch.

Open enrollment can be overwhelming, and many employees will hopefully use decision support to help them make informed choices. In other words, they will be Mastering Health Insurance.

Sources:

  • 2019 Employer Health Benefits Survey (Kaiser Family Foundation)
  • 2019 Commonwealth Fund Health Insurance in America Survey 2019 (Sara R. Collins and Munira Z. Gunja)