New Data Shows Majority of HR Leaders Believe Consumer-Directed Benefits Help Employees Battle Inflation

Rhea-AI Summary

HealthEquity (NASDAQ: HQY) releases findings from employer survey, highlighting the importance of consumer-directed benefits in battling inflation. The survey reveals that 87% of employers believe in the potential of consumer-directed benefits to combat shrinking purchasing power. HealthEquity's data also shows that cost containment is now the top concern for HR leaders, with consumer-directed benefits providing support through lower premium costs, employer contributions, and HSA contributions, ultimately leading to improved health outcomes.

HealthEquity releases research findings from national employer and employee surveys

DRAPER, Utah, July 18, 2023 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) (“HealthEquity”), the leader in health savings accounts (HSAs) and consumer-directed benefits administration released results from its latest employer survey which finds 87% of employers believe consumer directed-benefits can be a vehicle for battling inflation.

“We’ve all experienced the effects of shrinking purchasing power this year,” said HealthEquity Executive Vice President and Chief Marketing Officer, Tia Padia. “That’s why HSAs are more important than ever — utilizing consumer-directed benefits helps employees keep more of their paychecks month-to-month.”

The consumer price index has increased by 13% in the United States since April 2021. HealthEquity’s new data reveals cost containment is now HR leader’s top concern.

When asked how consumer-directed benefits help employees, HR leaders chose the following as the top three ways they provide support to employees:

• 35% indicated lower premium costs help employees increase take-home pay
• 24% said employer contributions offset healthcare-related costs
• 15% indicated HSA contributions reduce workers’ tax burdens
  

"Consumer-driven benefits like HSAs and high-deductible plans offer a unique value,” said Padia. “Beyond just cost savings for employers, they can also enhance healthcare accessibility, and with proper education, lead to improved health outcomes and an increased use of preventative care as employees engage more directly in managing their health.”

In addition to insights into the attitudes and priorities of benefits leaders, HealthEquity also identified an important nuance: while 74% of workers are concerned about inflation only 7% of HR leaders in a recent employer survey indicated that helping employees navigate inflation was a top concern. This suggests that there may be a disconnect between employee and employer perceptions and language around benefit cost concerns and priorities.

“Both sides of the benefits equation have good reason to be sensitive to dollars and cents,” said Padia. “Our belief is that carefully structured benefit plans that use consumer-directed elements can achieve the balance both employers and employees are looking for.”

To learn more about benefits affordability research findings, visit info.healthequity.com/affordable, or for additional perspective read “3 ways HSAs help employees battle inflation” on the HealthEquity Remark blog.

About HealthEquity 
HealthEquity is the leading administrator of Health Savings Accounts (HSAs) and other consumer-directed benefits, serving more than 14 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to connect health and wealth and value our culture of remarkable “Purple” service. For more information, visit www.healthequity.com. 

About the Research
These findings are from HealthEquity’s latest nationwide employer and employee survey. This study is part of HealthEquity’s thought leadership research program to explore topics related to the company’s mission to improve healthcare, financial wellbeing, and equity outcomes. Statistical testing was done at the 90% confidence level. The research was conducted by 8 Acre Perspective, an independent marketing research firm.

Media Contact
Amy Cerny 
801-508-3237 
acerny@healthequity.com

FAQ

What did HealthEquity release?

HealthEquity released findings from an employer survey.

What is the ticker symbol for HealthEquity?

The ticker symbol for HealthEquity is HQY.

What are the top three ways consumer-directed benefits help employees?

The top three ways consumer-directed benefits help employees are lower premium costs, employer contributions offsetting healthcare-related costs, and HSA contributions reducing workers' tax burdens.

What is the consumer price index increase in the United States since April 2021?

The consumer price index has increased by 13% in the United States since April 2021.