Survey: How COVID-19 is Transforming Atlanta Small Business Health Insurance Needs. | hioscar Blog | Oscar
Survey: How COVID-19 is Transforming Atlanta Small Business Health Insurance Needs.
Part 2: Trends in the impact of the COVID-19 pandemic on Atlanta small businesses and their employees.
Employee Health BenefitsTips for Small Businesses
7 min read
Share article
In Part 1 (opens in new tab) of the survey of U.S. small business owners conducted by Cigna + Oscar, we talked about how the COVID-19 pandemic is transforming small business health insurance needs across the country. Small businesses are the lifeblood of the U.S. economy, and sadly, they continue to struggle while many people are staying home as much as possible. In July alone, nearly 16,000 small businesses listed on Yelp (opens in new tab) closed. An estimated 55% of the 130,000 businesses that have shut their doors will never reopen.
Cigna + Oscar (opens in new tab) launched to provide differentiated health solutions to small businesses, starting in select markets such as Atlanta, Georgia, where it’s estimated that 20% of small businesses (opens in new tab) could close by the end of the year—resulting in the city suffering more than 500,000 job losses.
At the same time, our survey found that eight in 10 Atlanta small business decision-makers plan to hire back at least 10% of the employees they’ve laid off or furloughed during the pandemic. Their primary concern moving forward? The health and wellbeing of their employees.
91% of small businesses ranked this as the factor that has increased in importance most since the COVID-19 outbreak—higher than the national average of 88%.
91% of Atlanta small businesses say employee health and wellbeing is their top priority following the pandemic.
Through our partnership, Cigna + Oscar aims to provide health insurance that truly understands business decision-makers in cities like Atlanta, as well as their employees and business needs over time. For Part 2 of our study, we surveyed Atlanta small business owners to better understand how the pandemic is shifting their needs.
Download this infographic of highlights from the survey, and continue reading below for detailed insights.
How the COVID-19 pandemic is impacting small business operations in Atlanta.
Of the Atlanta small business decision-makers surveyed, 62% reported that their revenue has declined since the pandemic began. That’s lower than the national average of 70%, but still significant. Meanwhile, approximately 18% of small businesses in the area have seen an increase in revenue.
Among small businesses in Atlanta, 61% reported that they have laid off or furloughed employees. The majority (37%) of those have laid off an average 11-25% of their workforce.
Atlanta small businesses (91%) say that the health and wellbeing of their employees has become their highest priority during the pandemic, but their business’s financial health and operations are not far behind.
When asked how the pandemic has influenced the importance of key decision-making areas, new resources needed for operation (e.g., the ability to transition to virtual operations) have become more critical for 88% of respondents, and “the financial health of my business” for 87% of respondents.
About 30% of Atlanta small businesses have transitioned to operating with most employees working remotely, faster than the national average of 25%. About 18% continue to offer in-person services, with most employees working onsite or in-office, and 27% are operating with a hybrid of in-person and remote services.
When asked how the pandemic has impacted elements of their workplace environment, 65% of Atlanta small business decision makers said they’ve implemented more frequent sanitizing of the workspace; 66% have moved more communications and meetings online; 57% have restricted interactions between employees; and 52% have limited interactions with customers and clients.
How Atlanta small businesses are thinking about employee health care.
Small businesses are navigating unprecedented and rapid change, as many implement new safety practices and remote working. With all these drastic changes, managing budgets will be more crucial than ever before. Small businesses will look to find a balance between keeping their business running and their workers employed (and offering benefits to their employees).
Among common employer benefits, Atlanta small businesses ranked wellness benefits, such as discounted gym memberships, as the most important (26%), followed by financial planning resources, dental and vision insurance, and flexible work options, all at 17%. 12% of respondents said that paid time off is the most important benefit they look to offer their employees, and 16% cited health insurance as their top pick.
At the same time, 83% of Atlanta small business decision makers say that offering health insurance is now more of a priority in their overall business budget. That’s 17% higher than the national average (66%).
83% of Atlanta small businesses say health insurance is a higher priority in their budget.
As Atlanta small businesses reopen and rehire employees, managing expenses will be top of mind, for both their business and their employees. Small businesses will need a health insurance partner that cares about the unique financial needs of both employers and employees.
When asked how important various factors of their health insurance provider have become since the COVID-19 outbreak began, Atlanta small business decision-makers reported that cost will be as important as ever, selecting affordable premiums (82%), deductibles (80%), and co-pays for regular doctor’s visits (80%) as among the most critical elements of plans offered by their health insurance provider.
Yet they are also prioritizing factors that don’t relate to cost, such as a broad network of doctors, hospitals, and specialists (82%); flexible options to support their business's recovery from COVID-19 and help their business and employees get the most out of their plan (80%); and high-quality, personalized customer service and dedicated care support teams (78%).
Our survey also gave some insight into the types of health concerns that are common among Atlanta small businesses and their employees. When asked about the importance of affordable coverage for various types of care, internal medicine (88%) and physical medicine and rehabilitation (88%) came out on top. Allergy and immunology (85%), psychiatry and behavioral health (84%), and obstetrics and gynecology (83%) were also considered among the most important.
What Atlanta small businesses are looking for in a health insurance provider.
As we shared, 83% of Atlanta small business decision-makers say that offering health insurance is now a higher priority in their overall business budget. Similarly, 75% of respondents indicated that COVID-19 has increased demand for health insurance among their employees, and only 8% indicated that COVID-19 has decreased demand.
Small businesses are thinking more critically about their employees’ health care, and the most important factors to consider in choosing their health insurance provider. In Atlanta, more than half of small businesses are actively considering changing their health insurance company ahead of 2021; that’s 13% higher than the national average of 38%. Another 16% are not sure whether they will keep their insurance provider, bringing the total of those who might switch to 67%.
When asked what would have the most influence over their decision to change their organization's health insurance company, the top factor reported by Atlanta small businesses is whether another provider “better understands and cares about my business and employees” (32%), followed by “a brand I know and trust” (28%), and “more behavioral health benefits and affordable coverage” (28%).
As health care companies such as Cigna and Oscar look to support the rapidly evolving needs of small businesses and their employees across the country, these findings about Atlanta are significant. It’s clear that Atlanta’s small businesses are hoping for support from a true partner, one that understands the unprecedented challenges they’re facing right now.
Cigna + Oscar aims to deliver health insurance that fits the unique needs of small businesses and their employees: their budgets, communities, and more. By launching initially in select markets such as Atlanta, we can better learn and understand what these needs are.
By offering monthly savings, behavioral health benefits, and dedicated Care Teams to guide employees to the best care—whether a top in-network provider, or $0 24/7 Virtual Urgent Care—Cigna + Oscar plans are designed for small businesses and their employees.
About the Study
This survey was conducted online within the United States by The Harris Poll on behalf of Cigna + Oscar from May 14 to 26, 2020, among 1,032 U.S. health insurance decision makers at small businesses across a nationally-representative variety of industries with 11 to 50 employees (decision makers for purposes of this survey include a mix of business owners and administrators). The panel of respondents included more than 500 individuals nationally, and an oversample of more than 150 individuals each of the following areas: Atlanta, GA, Nashville, TN, and San Francisco, CA. This online survey is not based on a probability sample, and therefore no estimate of theoretical sampling error can be calculated.
Looking for group health plans? We’ve got you covered.
The Cigna + Oscar mission is devoted to providing health insurance that’s helpful and easy to understand, with a personalized customer service experience and benefits that feel good to use.
Ready to learn more? Visit cignaoscar.com (opens in new tab), call our team directly at 1-855-672-2784, or talk to your broker about us.
Cigna + Oscar coverage is insured by Cigna Health and Life Insurance Company.
Product availability may vary by location and plan type, and is subject to change. All group health insurance policies and health benefit plans contain exclusions and limitations. For costs and complete details of coverage, contact an Oscar representative. Coverage is subject to plan deductibles, copayments and coinsurance. For details, see your plan documents.
Cigna + Oscar coverage is insured by Cigna Health and Life Insurance Company. Benefits are administered by Oscar Management Corporation, an affiliate of Oscar Insurance Company. Pharmacy benefit management services are provided by Express Scripts, Inc. “Cigna” is a brand name and refers to operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company and Express Scripts, Inc.
