Health insurance makes up 8% of total employee compensation on average, and while most employees take up health insurance when it is offered, lower-wage workers are far less likely to be able to access coverage, according to a new KFF analysis of survey data and focus groups with more than 100 U.S. employers with over a quarter of a million employees.
About three in four employees are offered health insurance on average, and nearly two-thirds of those offered insurance enroll in the benefit. Workers in occupations with lower wages, such as service occupations, are much less likely to have access to health benefits at their jobs (94% of workers in higher-wage jobs vs. 44% in lower-wage jobs) and, even when they do, they are much less likely to enroll (72% vs. 49%).
Employers say the high price of premiums is a barrier to enrollment, particularly for hourly, lower-wage workers, and only a small proportion offer premium or cost-sharing support for workers with lower wages. Large employers are the most likely to offer additional support with premiums and cost-sharing for lower-wage workers.
