Dive Brief:
- Nearly 1 in 4 U.S. workers say they’re staying in a job they dislike because they’re worried about losing their health insurance, according to a report published this week.
- The number of workers reporting “job lock” is up from just five years ago, when 1 in 6 said they stayed in a job they would otherwise leave to keep their health benefits, according to the study published Tuesday by West Health and Gallup.
- The rise comes as premiums, drug costs and out-of-pocket healthcare spending has climbed in recent years, increasing the financial risk of leaving an employer’s health plan, researchers wrote. Meanwhile, turmoil on the Affordable Care Act exchanges could convince some Americans that nonemployer coverage is unaffordable.
Dive Insight:
Workers who already feel heightened financial strain from healthcare expenses are more likely to report job lock, according to the study, which surveyed more than 2,300 people with employer-sponsored health insurance.
Nearly half of people who said health costs were a major financial burden reported they’re staying in a job to keep their insurance, compared with about one-quarter who said health expenses were a minor burden.
Among respondents with personal or household medical debt, 44% said they’re staying at a job they want to leave for health coverage, compared with only 21% of those without medical debt.
Health status also plays a role, according to the research. Nearly 30% of workers who said they had one or more chronic conditions reported staying in a job for coverage, and more than 40% with three or more chronic conditions did so. Only 17% of those without chronic conditions said they held onto a job for coverage.
Women are also more likely than men to report job lock. They report financial stress from healthcare costs, medical debt and multiple chronic conditions more often, which could contribute to more women keeping their jobs for insurance, researchers said.
The analysis comes as the country’s healthcare spending continues to rise, spurred by increased utilization and heightened expenses for medications, like pricey GLP-1 drugs. Meanwhile, employers are signaling they may shift more costs onto their employees, as Americans say they’re less able to consistently afford healthcare.
Workers may also have fewer nonemployer coverage options. Last year, more generous financial assistance for ACA plans expired after Congress failed to extend enhanced premium tax credits, increasing costs for beneficiaries who buy coverage on the marketplaces. Millions of people fled the ACA exchanges as a result.
