The true cost of disconnected benefits decision making

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Help Employees Connect the Disconnected

Given today's competition for talent and the increasing investment that both employers and employees make in benefits, making the most of benefits packages may be more important than ever. Benefits administrators should consider moving away from the traditional siloed construct that tries to appeal to the largest cross-section of workers, to embracing personalized strategies to help employees weigh the tradeoffs of their workplace benefits and savings decisions, based on their unique goals and circumstances.

Without personalized decision support during open enrollment and guidance throughout the year, employees may find themselves over-spending in one area while under saving in another—potentially leaving them off-track for retirement or unprepared for unexpected expenses. Oftentimes, the root cause is the same: a lack of connectivity.

What is the Cost of Disconnected Decision Making in the Workplace?

Take a look at these relatable employee stories to see the cost from their point of view:

Story 1: Joe turns missed opportunity into seized opportunity

When making health insurance choices during open enrollment, Joe chose a PPO year after year because he thought a high-deductible health plan (HDHP) would be too costly in the event of a health emergency. What he didn't realize, however, was that the real cost was a missed opportunity. If Joe had chosen an HDHP with a lower premium and reallocated the saved premium dollars to a health savings account (HSA), he'd have had an account he could draw from to help him cover his eligible expenses such as the high deductible. He’d also benefit from the triple-tax advantages and growth potential of HSA funds, which could have compounded over the years based on what he had in his account. Thanks to myVoyage, Joe is now focused on seizing the opportunities of the future.

Hypothetical examples are provided for illustrative purposes only. Actual results may very.

A Voya-sponsored research study focused on health care plan selection
found that 89% of respondents simply pick the same health plan they chose
the previous year.¹

Story 2: Mary goes from a siloed to a full-picture view of her savings

Mary thought all was going according to plan thanks to the extra attention she gave her healthy retirement savings account. Then the furnace blew. Mary didn’t have an emergency savings account, so she opted to take a hardship withdrawal from her retirement account to pay for the repair—resulting in additional taxes and IRS penalties. Mary learned the value of considering her full financial picture when making savings decisions, and myVoyage has helped her make the most of her budget across her retirement, health and emergency savings accounts. Now, Mary feels better prepared for emergency expenses and better protected from needing to take hardship withdrawals in the future.

According to research by the Federal Reserve in 2019, 37% of Americans
would be unable to afford an unexpected $400 expense.²

Story 3: Scott reflects on his decisions and discovers a better approach

A summer vacation turned into a trip to the emergency room for Scott. He used his credit card to cover the medical expenses. To pay that off and avoid high interest rates, he decided to push pause on his monthly retirement contributions. Fortunately, Scott made a full recovery and was able to pay off his credit card. However, he couldn’t help but wonder if there could have been a better way to handle the unexpected expense. With the help of myVoyage, Scott learned about the advantages of contributing to and saving in his HSA and is now making great progress saving for retirement and future healthcare expenses.

Medical expenses are one of the leading causes of personal bankruptcy.³

Help Employees Connect Their Workplace Benefits and Savings Decisions

myVoyage, only available at Voya, is a next-level employee experience that provides holistic decision support during enrollment and guidance throughout the year. The experience can help employees make optimal decisions around their workplace benefits, including health benefits, HSAs, student loan debt, emergency savings and retirement savings—ultimately helping employers and employees get more out of their benefits offering.

Learn more or request a demo at voya.com/future-of-benefits

Source:

1. Health Plan Research, “Understanding the selection and decision-making process”; Key Findings including Discrete Choice Exercise results; Oct. 9, 2020. Conducted on behalf of Voya Financial by Russell Research)

2. https://www.federalreserve.gov/publications/2020-economic-well-being-of-us-households-in-2019-dealing-with-unexpected-expenses.htm

3. Himmelstein, D. U., et al. “Medical Bankruptcy: Still Common Despite the Affordable Care Act.” American Journal of Public Health 109.3 (2019):

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IMPORTANT: The projections or other outputs of Personalized Enrollment Guidance regarding the likelihood of various health costs and spending, and investment outcomes are hypothetical in nature. They do not reflect actual health costs and spending or investment results and are not guarantees of future results. Personalized Enrollment Guidance does not provide tax advice.

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Health Savings Accounts offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). HSA custodial services provided by Voya Institutional Trust Company.

Investments are not FDIC Insured, are not guaranteed by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC), and may lose value. All investing involves risks of fluctuating prices and the uncertainties of return and yield inherent in investing. All security transactions involve substantial risk of loss.

The Personalized Enrollment Guidance tool provides information and options for your consideration regarding, among other things, Supplemental Health insurance policies. Because Voya sells Supplemental Health insurance policies as part of its overall Health Solutions business, you should consider the conflict of Voya’s ownership interest in SAVVI when considering the Supplemental Health insurance policies Personalized Enrollment Guidance highlights for your consideration. You are under no obligation to purchase any benefits highlighted by the Personalized Enrollment Guidance tool, and most such benefits can be purchased or excluded on an individual basis. You are not required to purchase Supplemental Health insurance to enroll in healthcare coverage.

Voya also offers retirement products as part of its Wealth Solutions line of business. You should also consider the conflict of Voya's ownership interest in SAVVI when reviewing the contribution calculations made by the Personalized Enrollment Guidance tool in connection with your retirement savings options. You are not obligated to make any such contribution.

The Personalized Enrollment Guidance tool provides information and options for you to consider in making healthcare, health savings, emergency savings, and retirement savings choices. Those choices are solely up to you to make. Personalized Enrollment Guidance does not provide you with fiduciary advice with respect to your plan elections and contributions. None of SAVVI, Voya, nor WEX Health acts in a fiduciary capacity in providing Personalized Enrollment Guidance or other services to you; any such fiduciary capacity is explicitly disclaimed.

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