Following a long reign as the nation's largest living generation by population, Baby Boomers are no longer the king of the throne. The millennials — aka Generation Y — are projected to number more than 75 million this year, according to Pew Research.
And, Baby Boomers are retiring at an alarming rate – a whopping 10,000 a day until 2030, according to the Pew Research Center. As boomers exit, the workforce, the largest generation in the country, 76.6 million to be exact, is waiting in the wings. They’re the young professionals of today.
Millennials (born between 1980 and 1996) have over $1.68 trillion in purchasing power, are highly educated, and adapt to change quickly. They can tweet faster than you can say, "health insurance." But unfortunately, when it comes to health insurance, many millennials don’t seem to get it.
That’s a big deal for employers — at least it should be — and here’s why.
Millennials learn and communicate differently.
As the first generation of true digital warriors, millennials have grown up with smartphones, tablets, social media, and video. Millennials are overwhelmingly digital-first. In fact, according to a recent Pew Research survey, 15 percent of young adults ages 18 to 29 are "smartphone-dependent" and have utterly foregone home Internet service for wireless data.
Regardless, many employers are still relying on printed enrollment guides alone to communicate employee benefits. While these materials work well for older employee populations, with millennials, they are most likely missing the mark.
Millennials are facing more economic hardships
Another essential reason why millennials may be resistant to health care: They can’t afford it. According to the Pew Research Center, millennials are the first in the modern era to have higher levels of student loan debt, poverty, and unemployment paired with lower levels of wealth and personal income than their two immediate preceding generations at the same stage of their lives.
Two-thirds of recent undergraduates have outstanding student loans of about $27,000, according to the Urban Institute and the National Center for Education Statistics. Two decades ago, only half had an average college debt of $15,000.
Not to mention, millennials are the children of the Great Recession. Having come of age during a time wrought with economic instability, they are more risk-averse than the generations that precede them. So with the disposable income they do have, they are hesitant spenders.
Young, but not invincible.
Though they face fewer chronic health issues, young adults end up in the emergency room more than any age group other than the elderly.
Another study conducted by the National Business Group on Health found that only 39 percent of millennials believe preventive care is a crucial element of staying healthy. They are most likely to forego checkups, wellness visits, and screenings— so much so that as many as 40 percent don't have a primary care doctor.
So, millennials are more medically vulnerable than they may seem. As an employer, it's essential to call attention to the value of "just in case" health care in catching potential health issues before it's too late.
When it’s time to shop for healthcare, many millennials are first time buyers.
Under the Affordable Care Act (ACA), young adults are allowed to stay on their parents’ health insurance plans until they turn 26. They are taking full advantage of the opportunity because, more often than not, Mom and Dad pick up the bill. According to a report from the ADP Research Institute, less than half of all eligible employees under age 26 enrolled in their employer-provided health plan in 2015.
And when millennials are finally ready to shop healthcare for the very first time, they often find the process to be daunting, confusing, and often overwhelming. A recent study conducted by Guide Spark revealed that:
• More than 50 percent of millennial employees don’t understand their employee benefits options
• More than 56 percent wish their employers would communicate better about their benefits
• More than 50 percent of employees surveyed want to get more out of their benefits, but also want to spend as little time as possible learning about them.
“45 percent of millennials would rather clean out their email than research health benefits.” – Aflac
“Most millennials thought an affordable plan would cost less than $100 a month.” – Journal of Adolescent Health
And how can the right communications help?
Talk to them in plain language. Start by getting back to the basics — ditch acronyms like CDHP and HSA and instead, define basic insurance terms like:
• Deductible
• Co-insurance
• Premium
• Out-of-Network
• High-deductible health plan
• Health savings account
Make sure your definitions are clear, concise, and jargon-free. For example:
• Instead of “Ancillary provider.” How about “dentist,” “lab,” or “pharmacy.”
• "Formulary" becomes a "prescription drug list."
• “Member liability” becomes “the amount you will pay.”
• “Telephonically” becomes “by phone.”
• “Utilize” becomes “use.”
Embrace technology.
Meet millennials where they are – online, on their phones, all the time. Consider sending text messages, use interactive decision-support tools, posting to company social media channels, and more.
“54% of millennials email, text, and check social media before getting out of bed, and 42% would rather give up their sense of smell than internet access.” -- 2014 Cisco Connected World Technology Report
When used effectively, technology can enhance the enrollment experience by giving employees easy access to their benefits information.
This same technology also provides an opportunity to offer higher-quality care at lower costs. Telemedicine and e-visit solutions simplify making appointments and coordination of care.
Make it personal.
While millennials may send upward of 100 texts a day, they still value face-to-face communications, especially when it comes to making important decisions. In-person meetings can provide more information for those who require additional assistance with making the right benefit elections.
Keep the conversation going.
Educating millennials and other employees about their benefits cannot be a one-and-done effort. For this generation, it’s vital to communicate year-round and through many channels.
And the conversation shouldn't be one-sided. Ask for feedback. Short surveys throughout the year are a great way to solicit input and show employees you value their opinion, as long as you do and are open to change. Only ask if you want to know and are prepared to do something about it.
And remember to have some fun.
Communicating with this group allows you to be playful in your messaging, test new technologies, and truly reinvent the way you talk about health insurance. Take advantage of it and enjoy the ride.