- What's at stake: Rising choice paralysis risks higher employer compensation costs and lost productivity.
- Supporting data: 62% of zillennials use ChatGPT to review healthcare plans.
- Forward look: Prepare for AI and social platforms to reshape benefits education and enrollment.
- Source: Bullets generated by AI with editorial review
For many young workers, picking the right healthcare plan during
A new report by HR and payroll platform Justworks and The Harris Poll lays out the struggles of zillennials with "planxiety" and "choice paralysis." Zillennials fall in the microgeneration between millennials and Gen Z.
A lot of it just comes down to inexperience, says David Feinberg, senior vice president of risk and insurance at Justworks.
"Many of them are enrolling for the first time and rolling off their parents' plans," Feinberg said.
Instead of relying on traditional resources like
One in five in this demographic say they lack confidence choosing health insurance, and over half say they don't know much about the process because they've never had to choose their own plan.
This confusion can cost both employees and employers more money and time in the long run, says Feinberg, underscoring the
Tackling coverage complacency
Benefits are a major part of compensation, and health insurance consistently ranks at the top. Many employees don't appreciate how much of the cost is shouldered by their company until they're out of a job and have to shop for a plan in the marketplace, Feinberg says.
"As a result, people become complacent," he says.
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According to the Justworks report, 22% of zillennials re-enroll in their previous year's plan during open enrollment without reviewing details, while just 11% ask benefit managers for help.
Many are instead
"While there are a lot of benefits to TikTok and meeting people where they are, I think there are resources that have a lot more authority and less bias that people could access," Feinberg says.
AI, on the other hand, has some practical uses when
Tapping into FSAs and HSAs
The Justworks report also highlights the underutilization of two important healthcare benefits: Flexible spending accounts and health savings accounts. Most zillennials are aware of FSAs and HSAs but just 30% have one. Only about 20% actually use the tax-advantaged accounts and understand the benefits.
Millennials are more familiar with these accounts than Gen Z — 53% to 35% — indicating a generational gap in financial literacy around health benefits.
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"It's challenging. I don't think anybody has cracked the code," Feinberg says of the low usage rates.
He suggests that benefit managers explain the perks of HSAs and FSAs as part of a larger overview of
Making people feel confident
Selecting the right health care plan is a very personal decision, and Feinberg says it's important to give employees the tools they need so they feel confident in their coverage decisions.
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Sometimes that can be as simple as using an analogy that young people can relate to. Feinberg uses the example of renters and auto insurance — two policies that most zillennials are familiar with.
A healthcare plan "upgrades very much like a deductible on a car," Feinberg says. "You're making decisions: Do I want a $250 deductible, $500 or $1,000? And so if you draw those analogies, I find that it tends to become more intuitive for people in terms of what they're picking."
