Survey: Employees Report Cuts in Health and Dental Benefits - Virgin Pulse

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Survey: Employees Report Cuts in Health and Dental Benefits

January 10, 2011 / Uncategorized

According to a recent information gathered from the Q4® Employment Confidence Survey of 2,118 U.S. adults aged 18+ conducted on its behalf by Harris Interactive®, employees report the highest rate of health and dental benefit cuts in two years.

“While reported cutbacks in other areas declined or remained at the same level from the third quarter, health and dental benefit cuts peaked at the highest level in two years following steady quarterly increases. This quarter, 28 percent of employees who cited at least some changes reported cuts to their health and dental benefit in the past six months, compared to 22 percent in the third quarter and 17 percent in the fourth quarter of 2009. Meanwhile, employees reported fewer cuts in perks (i.e. commuter subsidies, free food, tuition reimbursement) (12 percent) and hiring freezes (24 percent) than in previously reported quarters. The rates for furloughs, unpaid leave and/or mandatory vacation (17 percent) as well as job restructurings/redundancies (11 percent) remained unchanged from the third quarter.”

This tells us that while some areas of employment are stabilizing and growing stronger, employers are still struggling with the growing cost of health care benefits.  A recent Hewitt report predicted that employers can expect 2011 health care cost increases to be at their highest levels in five years with an 8.8% average premium increase for employers (compared to 6.9% in 2010). This Employment Confidence Survey shows that employers are deflecting some of the costs by cutting back on benefits.  As the cost of health benefits continues to increase for both the employer and the employee, it’s important to look ahead and find a way to mitigate the problem, as opposed to just deferring or absorbing the costs.

Joseph Stan |

This is definitely true. I hear about it all the time. I also think that when benefits are not being cut they are getting more expensive without offering anything in addition.


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