Diving overview:
- Almost 25% of U.S. workers report they stay in jobs they dislike due to fears of losing health insurance, according to a recent report.
- The trend of workers feeling “locked in” to their jobs has grown since five years ago, when about 16% indicated they would remain in a job for health benefits, based on a West Health/Gallup poll shared this week.
- This shift appears linked to rising costs of insurance premiums, pharmaceuticals, and out-of-pocket medical expenses, making the risk of leaving employer-provided insurance more daunting. Additionally, confusion around the Affordable Care Act may lead some to think alternatives are too costly or inaccessible.
Dive Insight:
The survey, which included over 2,300 respondents with employer health insurance, revealed that those already feeling financial strain from medical expenses are more likely to experience job lock.
Nearly half of those who found medical costs to be a significant burden reported continuing their employment for insurance, compared to about 25% who found medical expenses to be less of an issue.
Among individuals with personal or household medical debt, 44% said they stayed in jobs they wished to leave because of health coverage, while only 21% of those without medical debt reported the same.
Health conditions are also a factor; roughly 30% of workers with one or more chronic issues stated they continued working primarily for insurance benefits. This number soared to over 40% among those with three or more chronic conditions. In contrast, just 17% of individuals without such conditions mentioned staying in their jobs for health coverage.
Interestingly, women are more likely than men to experience job lock. Researchers noted that women often report higher instances of medical bills and debt, alongside financial stress from managing multiple chronic conditions, leading more of them to stay in positions solely for insurance.
This analysis comes as health spending in the U.S. continues to escalate due to increased utilization and soaring costs of medications, including expensive GLP-1 drugs. It appears that employers might be shifting more costs onto employees, leaving many unable to manage medical expenses consistently.
Moreover, coverage options outside employer plans may be dwindling. The expiration of more generous financial support for ACA plans last year, after Congress didn’t pursue an expansion of premium tax credits, has raised costs for those purchasing insurance through the marketplace. Consequently, millions have departed from the ACA exchanges.
