by Deborah J. Hodges, MA
Whether you love them or hate them, millennials are here to stay and they’re changing the way everyone does business. Those who don’t change along with the times will get left behind, so here’s what you need to know about how millennials are influencing the healthcare industry.
The Millennial as Consumer
The vast majority of Millennials are still receiving health insurance through their employer, although many are benefiting from the Affordable Care Act’s provision that lets them stay on their parents’ plan until they’re 26. Since employment rate for those just entering the workforce continues to be low, this provision has been a literal life saver for many Millennials.
Millennials also make up a significant portion of the 20 million people who now have health insurance through the new marketplace. Approximately 3.5 million young adults have gained coverage through the marketplace since 2014, most of whom are low income.
Finally, the ACA’s extension of Medicaid has insured roughly 4 million Millennials who did not previously have health insurance.
While greater access to insurance and healthcare are both positive, the worlds of insurance and healthcare are still complicated and confusing. Neither was designed to sell directly to the consumer, but rather to employers, so it’s no wonder consumers (especially young consumers) are having a hard time deciphering their healthcare plans. Studies show they are less clear than older adults on how to file a claim, where to go for care, how to compare costs, or how to decipher the terminology used by healthcare and insurance professionals. Millennials also tend to be less clear on their available resources or what preventive care is and how it can help them.
The Millennial as an Employee
Most Millennials entered the workforce during the Great Recession, which has had a lasting impact on their attitudes toward employment and income. Since most Millennials are earning a fraction of what their parents were making at the same point in their lives, Millennials tend to be less concerned about how much money they make and more focused on factors like the kind of work they’re doing and where and how they’re allowed to do that work.
Because they grew up with laptops and cell phones, Millennials are comfortable with technology and the idea that they can do their work from anywhere with a WIFI signal. While not all jobs can be done via telecommuting, an increasing number of industries can go mobile, and any employer looking to attract Millennial workers will need to address that demand. Going along with that is the fact that Millennials don’t necessarily want to be working the standard 9-5. Many are willing to come in earlier or stay later so they can drop their kids off at school or be home in time for dinner.
A direct result of having to accept lower wages is that Millennials are more concerned with the kind of work they do and who they’re working for than the amount of money they earn. They want to be doing work that’s interesting to them and aligns with their values. For this reason, charitable companies that actively give back to their communities tend to be popular with Millennial workers.
The perks don’t hurt either. Millennials are often willing to take a job that pays less if there’s an on-site gym, daycare center, game room, etc.
Finally, Millennials are not sticking around as long as older employees. They tend to average around 2 years with each employer, while Generation X tends to spend closer to an average of five years with each employer. However, that may have more to do with their stage of life than generational differences. Studies show the average amount of time Generation X spent with one employer sixteen years ago is comparable to Millennials’ job stability now.
What Does This Mean for Healthcare Providers?
The good news is that the percentage of insured individuals has decreased over the years and is likely to continue to do so. On the other hand, those with low literacy levels and those who don’t understand their health insurance tend to act much like those without insurance in that they don’t go to see their doctor regularly, they put off getting medical attention when they need it, and they generally don’t have a clear understanding of preventive care.
Healthcare providers need to make sure their marketing goes directly to their consumer. Their messaging should aim to educate the consumer on the kinds of care available to them, as well as their payment options.
What Does This Mean for Healthcare Employers?
In order to attract Millennial workers, employers need to provide the kinds of things Millennial workers are looking for: namely flexible work hours, telecommuting options, more paid time off, and more opportunities for greater work-life balance.
Not every company needs a ping pong table, but it is important for employers to start thinking about the kinds of things their employees are looking for and the different ways they can go about providing those things. Millennials love on-site game rooms, not because they don’t want to work, but because it gives them a chance to collaborate with their coworkers and get to know them away from the traditional cubicle environment. That’s why companies have started lowering cubicle walls and creating more communal work spaces that give people a chance to discuss and come up with new ideas. It’s an environment where everyone wins.
Both Millennials and Healthcare Employers have challenges ahead to meet today’s needs. This is also an opportunity to learn more about each other.
For more information visit SHSMD website and their SHSMD Blog.
Deborah J. Hodges, MA, Golden Square, can be reached at dhodges@goldensquare.biz or by telephone at 312.675.6080.