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Majority of Adults With Employer-Provided Health Insurance Would Forego a Pay Increase to Maintain Their Health Insurance Benefits

Posted on: Thursday, 4 August 2005, 18:01 CDT

ROCHESTER, N.Y., Aug. 4 /PRNewswire/ -- U.S. adults whose employers provide them with health insurance are more likely to say that their health insurance benefits have gotten worse over the last two or three years compared to their salary or their retirement benefits. At the same time, an increasing number of adults with employer-provided health insurance say that maintaining or improving their current level of health insurance is more important to them than getting a decent pay increase and that if faced with a choice, they would choose to forego a pay increase but maintain their current health insurance benefits.

These are some of the results of a Harris Interactive(R) online survey of 2,299 U.S. adults conducted between July 22 and 26, 2005 for The Wall Street Journal Online's Health Industry Edition.

Specific results from this poll include: * More than two-in-five (43%) adults with employer-provided health insurance say their health insurance benefits have gotten worse over the last two or three years, compared to 14 percent who say their salary has gotten worse and 18 percent who say their retirement benefits have gotten worse. * Compared to 2003, the percentage of adults with employer-provided health insurance who say their health insurance benefits have gotten worse over the last two or three years has remained steady (42% in 2003 vs. 43% now), while the percentages have dropped for those saying their retirement benefits (27% in 2003 vs. 18% now) or their salary (18% in 2003 vs. 14% now) has gotten worse. * A majority (59%) of adults with employer-provided health insurance say that when looking to the next year, it is more important for them to get a decent pay increase than it is to maintain or improve their current level of health insurance. However, more than a third (35%) say maintaining their current benefit level is more important, an increase of six percentage points from 2003. * A majority (61%) of adults with employer-provided health insurance say that if faced with a choice, they would choose to have no pay increase but maintain their current health insurance benefit, compared to 56 percent who felt this way in 2003. Approximately three-in-ten (29%) say they would choose to get a decent pay increase and take a significant cut in their health insurance benefits. Potential handling of significantly higher out-of-pocket healthcare costs

If faced with significantly higher out-of pocket costs for healthcare, adults with employer-provided health insurance are more likely to try to save money elsewhere to help cover these costs (40%) rather than curtail their use of healthcare services or products (20%) or search for less expensive coverage (26%). These adults say they would be most likely to try to save money by:

* Putting more money in a health savings or reimbursement account to prepare for future healthcare expenses (19%) * Putting more money in personal savings accounts to prepare for future healthcare expenses (11%) * Spending less money on other things (10%).

A small percentage (4%) say they would be most likely to drop their health insurance coverage all together while a further 11 percent are not sure what they would do.

TABLE 1

EMPLOYER-PROVIDED HEALTH INSURANCE "Are you employed by an employer who pays for all or part of the cost of your

health insurance?" Base: All Adults % Not employed* 37 Employed, but no health insurance 20 Yes, employer provides health insurance 42 Don't know 1 * Includes those who are retired. TABLE 2-A

SALARY AND BENEFITS: GETTING BETTER OR WORSE? "Over the last 2 or 3 years, have each of the following been getting better or

worse?" Base: Has employer-provided health insurance 2005 Your Salary Your Retirement Your Health or Pay Benefits Insurance % % % Better (NET) 56 27 23 Much better 16 8 9 Somewhat better 40 19 13 Neither better nor worse 27 48 33 Worse (NET) 14 18 43 Somewhat worse 9 11 33 Much worse 5 7 10 Do not have 2 5 1 Not sure * 2 1 Note: Percentages may not add up to 100 percent due to rounding. * Less than 0.5 percent. TABLE 2-B

SALARY AND BENEFITS: GETTING BETTER OR WORSE? "Over the last 2 or 3 years, have each of the following been getting better or

worse?" Percent saying "somewhat worse" or "much worse" Base: Has employer-provided health insurance 2003 2005 % Pt. Change % % % Salary or pay 18 14 -4 Retirement benefits 27 18 -9 Health insurance 42 43 +1 Note: 2003 results are from The Wall Street Journal Online/Harris Interactive Health-Care Poll (Volume 2, Issue 9) issued on October 22,

2003. http://www.harrisinteractive.com/news/newsletters/wsjhealthnews/WSJOnline_HI_H ealth-CarePoll2003vol2_iss9.pdf

TABLE 3 IMPORTANCE OF PAY INCREASE VS. MAINTAINING HEALTH BENEFITS "As you look to next year, which is more important to you?" Base: Has employer-provided health insurance % Pt. 2003 2005 Change % % % Getting a decent pay increase 66 59 -7 Maintaining or improving your 29 35 +6 current level of health insurance Don't know 5 6 +1 Note: 2003 results are from The Wall Street Journal Online/Harris Interactive Health-Care Poll (Volume 2, Issue 9) issued on October 22,

2003. http://www.harrisinteractive.com/news/newsletters/wsjhealthnews/WSJOnline_HI_H ealth-CarePoll2003vol2_iss9.pdf

TABLE 4 CHOOSING BETWEEN A PAY INCREASE OR MAINTAINING HEALTH BENEFITS "If you were faced with a choice, which one of the following would you choose?" Base: Has employer-provided health insurance % Pt. 2003 2005 Change % % % Having no pay increase but maintaining your current health insurance benefits 56 61 +5 Getting a decent pay increase and having a significant reduction in your health insurance benefits 29 27 -2 Don't know 16 12 -4 Note 1: Percentages may not add up to 100 percent due to rounding. Note 2: 2003 results are from The Wall Street Journal Online/Harris Interactive Health-Care Poll (Volume 2, Issue 9) issued on October 22,

2003. http://www.harrisinteractive.com/news/newsletters/wsjhealthnews/WSJOnline_HI_H ealth-CarePoll2003vol2_iss9.pdf

TABLE 5

POTENTIAL RESPONSES TO INCREASES IN OUT-OF-POCKET EXPENSES

"Thinking about your current health benefits, if the amount you pay out-of-

pocket for healthcare (like doctor visits, tests or prescription drugs) were to increase substantially, which one of the following would you be most likely

to do?" Base: Has employer-provided health insurance Income Total Less $35K $50K $75K than to to and $35K $49.9K $74.9K over % % % % % Try to find a less expensive health plan 26 28 32 26 20 Try to use fewer healthcare products and services 20 22 21 26 13 Save money elsewhere (NET) 40 29 32 36 54 Put more money in a health savings or reimbursement account to prepare for future healthcare expenses 19 12 17 18 24 Put more money aside in personal savings accounts to prepare for future healthcare expenses 11 9 6 9 18 Spend less money on other things 10 8 9 9 12 Drop health insurance coverage all together 4 5 4 4 3 Not sure 11 16 11 7 10 Note: Percentages may not add up to 100 percent due to rounding.

Downloadable PDFs of Wall Street Journal Online/Harris Interactive Health- Care Polls are posted at http://www.harrisinteractive.com/news/newsletters_wsj.asp.

Methodology

Harris Interactive conducted this online survey within the United States between July 22 and 26, 2005 among a national cross section of 2,299 adults, ages 18 years and over, of whom 1,030 have employer-provided health insurance. Figures for age, gender, race/ethnicity, education, income and region were weighted where necessary to align with population proportions. Propensity score weighting was also used to adjust for respondents' propensity to be online.

Though this online sample is not a probability sample, in theory, with probability samples of this size, Harris Interactive estimates with 95 percent certainty that the overall results have a sampling error of plus or minus 3 percentage points of what they would be if the entire U.S. adult population had been polled with complete accuracy. Sampling error for sub-sample results of those who have employer-provided health insurance (1,030) and those with incomes of less than $35K (213), $35K-$49.9K (173), $50K-$74.9K (257) and $75K or more (255) who have employer-provided health insurance is higher and varies. Unfortunately, there are several other possible sources of error in polls or surveys that are probably more serious than theoretical calculations of sampling error. This includes refusals to be interviewed (nonresponse), question wording and question order, and weighting. It is impossible to quantify the errors that may result from these factors.

2003 results are from The Wall Street Journal Online/Harris Interactive Health Care Poll (Volume 2, Issue 9) issued on October 22, 2003. http://www.harrisinteractive.com/news/newsletters/wsjhealthnews/WSJOnline_HI_H ealth-CarePoll2003vol2_iss9.pdf

These statements conform to the principles of disclosure of the National Council on Public Polls.

About the Survey

The Wall Street Journal Online/Harris Interactive Health-Care Poll is an exclusive poll that is published in the award-winning Health Industry Edition of The Wall Street Journal Online at http://www.wsj.com/health.

About The Wall Street Journal Online

The Wall Street Journal Online at WSJ.com, published by Dow Jones & Company (NYSE: DJ; http://www.dowjones.com/), offers authoritative analysis, breaking news and commentary from top industry journalists. Launched in 1996, the Online Journal is the largest paid subscription news site on the Web, with more than 689,000 subscribers world-wide. The Online Journal provides in-depth business news and financial information 24 hours a day, seven days a week, with insight and analysis, including breaking business and technology news and analysis from around the world. It draws on the Dow Jones network of more than 1,500 reporters and editors -- the largest staff of business and financial journalists in the world. For the second consecutive year in 2003, the Online Journal received a WebAward for the "Best Newspaper Web Site" and was also cited by Yahoo! Internet Life magazine as the "Best Business News" site (2002 & 2001).

About Dow Jones & Company

In addition to The Wall Street Journal and its international and online editions, Dow Jones & Company (NYSE: DJ; dowjones.com) also publishes Barron's and the Far Eastern Economic Review, Dow Jones Newswires, Dow Jones Indexes and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva, with Hearst of SmartMoney and with NBC of the CNBC television operations in Asia and Europe. Dow Jones also provides news content to CNBC and radio stations in the U.S.

About Harris Interactive(R)

Harris Interactive Inc. (http://www.harrisinteractive.com/), the 13th largest market research firm in the world, is a Rochester, NY-based global research company that blends premier strategic consulting with innovative and efficient methods of investigation, analysis and application. Known for The Harris Poll(R) and for pioneering Internet-based research methods, Harris Interactive conducts proprietary and public research to help its clients achieve clear, material and enduring results.

Harris Interactive combines its intellectual capital, databases and technology to advance market leadership through its U.S. offices and wholly owned subsidiaries, HI Europe in London (http://www.hieurope.com/), Novatris in Paris (http://www.novatris.com/), and through an independent global network of affiliate market research companies. EOE M/F/D/V.

To become a member of the Harris Poll Online(SM) and be invited to participate in future online surveys, http://www.harrispollonline.com/.

Press Contacts: Nicole C. Pyhel The Wall Street Journal Online 609-520-4057 Nancy Wong Harris Interactive 585-214-7316 Kelly Gullo Harris Interactive 585-214-7172

Harris Interactive

CONTACT: Nicole C. Pyhel of The Wall Street Journal Online,+1-609-520-4057; or Nancy Wong, +1-585-214-7316, or Kelly Gullo,+1-585-214-7172, both of Harris Interactive

Web site: http://www.harrisinteractive.com/http://www.wsj.com/healthhttp://www.dowjones.com/http://www.hieurope.com/http://www.novatris.com/

Source: PRNewswire

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