1 in 6 workers dislike job, but stay for health insurance, study finds

Image of a worker with a paper bag over his head weighing a health icon in one hand vs. an icon representing happiness at work in the other. 1-in-6-workers-stay-on-a-job-they-dislike-for-the-health-insurance.

By Susan Rupe

Just how much do people value their employer-sponsored health insurance? Consider this: One in six workers dislike their jobs but are staying on because of their health insurance. That was one of the takeaways in a recent BuzzRx study on working Americans’ health coverage concerns.

Employees are willing to put up with a lot at their current jobs in return for having health insurance, the study showed. Workers said they are willing to endure:

Unfulfilling work (38%).
Limited career advancement (28%).
Difficult coworkers (26%).
High stress (24%).
Low pay (12%).

Women feel especially obligated to stay on the job for the health insurance, with women 40% more likely than men to say they are willing to endure high stress at work to keep their health coverage.

Workers who are younger or who are new to their roles were more likely to let their need for health insurance trump their happiness on the job, the study showed.

Nearly 1 in 10 workers who have been on the job a year or less said they were sticking with a job they disliked because of the health insurance. Generation Z workers (29%) were more likely than millennials (25%) to stay in jobs that lack creativity or autonomy to retain their health care coverage. Meanwhile, Generation X workers (32%) were more likely than millennials (27%) to stay in jobs with limited advancement opportunities.

In addition to health insurance keeping many workers chained to jobs they dislike, the challenges of obtaining and paying for health insurance prevent many employees from switching from full-time employment to striking out into self-employment. The study showed 45% of those surveyed said the risk of losing health insurance is deterring them from becoming self-employed. The largest percentage of those who are concerned about health coverage if they were self-employed (64%) said they are worried about the cost of premiums. More than half (51%) said the cost of deductibles or out-of-pocket expenses would keep them from becoming self-employed.

Employer-sponsored health insurance continues to be a strong draw for some who are their own bosses, with nearly 3 in 10 self-employed workers saying they might abandon their solo ventures in return for coverage.

The survey “is helping us understand Americans’ top priorities for what they seek out of their health plans, to help providers offer affordable, comprehensive plans to businesses that can help them retain employees, and also attract top talent, which would make them more like gives them an edge in the job market,” said Hannah Workman, a project manager working on behalf of BuzzRx.

The future of employer-sponsored coverage

Millennials and Gen Z are making their mark on the world of work, and they have their own opinions on employer-sponsored health insurance.

The survey showed more than half of Gen Z workers (55%) were concerned about their future health coverage, with 1 in 5 not at all informed about the health insurance system or their options. About two-thirds of Gen Zers said they are concerned about the increasing costs of insurance, while 30% were overwhelmed by the complexity of health insurance.

“I think this points to a need for benefits brokers to provide clearer and simple insurance education to young adults,” Workman said.

More than one-quarter of Gen Z workers said they fear not having access to mental health services. This may be driven by the survey results showing that Gen Z is 121% more likely than millennials to want their health insurance to cover psychiatric medications.

When workers were asked what they wanted from their employer-based coverage in the future, it’s no surprise that most of the answers revolved around costs.

Low monthly premiums topped the wish list of 74% of respondents, followed by low copays and deductibles (70%), coverage for a broad range of services (50%), and discounts on preventive services and wellness programs (38%).

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on X @INNsusan.