Survey: How COVID-19 is transforming Tennessee small business health insurance needs. | hioscar Blog | Oscar
Survey: How COVID-19 is Transforming Tennessee Small Business Health Insurance Needs.
Part 2: Trends in the impact of COVID-19 on Tennessee small businesses and their employees.
Employee Health BenefitsTips for Small Businesses
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Part 2: Trends in the impact of COVID-19 on Tennessee small businesses and their employees.
Small businesses are crucial to Tennessee’s economy: in 2019, companies state-wide employed an average of 16 employees. One in five Tennessee businesses are in industries that have been most hurt by the COVID-19 pandemic—such as restaurants and bars, travel, and entertainment—and Tennessee’s unemployment rate reached an all-time high in April at ~15%, according to The Sycamore Institute (opens in new tab).
Our survey also revealed that a quarter of small business decision-makers anticipate rehiring at least 50% of their workforce that had been laid off or furloughed due to the pandemic. Looking ahead, small businesses nationwide and those in Nashville, Tennessee view their top priority as providing affordable health care coverage to their employees.
A quarter of Nashville small businesses plan to rehire at least 50% of their laid off or furloughed employees.
Through our partnership, Cigna + Oscar aims to provide health insurance that truly understands business decision-makers in cities like Nashville, as well as their employees and business needs over time. For Part 3 of our study, we share insights from our survey of Nashville 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 Nashville.
Of the Nashville small business decision-makers surveyed, 55% reported that their revenue has declined since the pandemic began. That’s lower than the national average of 70%, but still significant. Meanwhile, approximately 23% of small businesses in the area have seen an increase in revenue.
Among small businesses in Nashville, 62% reported that they have laid off or furloughed employees. The majority (38%) of those have laid off an average 26-50% of their workforce.
Nashville small businesses (88%) say that the health and well-being of their employees has become their highest priority during the pandemic, but their business’s financial health and operations are not far behind at 85%.
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 80% of respondents, and “how and where my business operates” for 77% of respondents.
About 30% of Nashville small businesses have transitioned to operating with most employees working remotely, faster than the national average of 25%. About 11% continue to offer in-person services, with most employees working onsite or in-office, and 21% are operating with a hybrid of in-person and remote services.
In terms of the workplace environment, 55% of Nashville small business decision makers said they’ve implemented more frequent sanitizing; 54% have moved more communications and meetings online; 47% have restricted interactions between employees; and 52% have limited interactions with customers and clients.
How Nashville small businesses are thinking about employee health care.
Small businesses are navigating unprecedented and rapid challenges, as many implement new safety practices and remote working. With all of these drastic changes, managing budgets will be more crucial than ever. Small businesses will seek a balance between keeping their business running and their workers employed (as well as offering benefits to their employees).
Among common employer benefits, Nashville small businesses ranked health insurance, and dental and vision coverage, as most important (each at 21%), followed by wellness benefits (18%), flexible work options at 15%, paid time off at 14%, and financial planning at 10%.
At the same time, 73% of Nashville small business decision makers say that offering health insurance is now a greater priority in their overall business budget. That’s 7% higher than the national average (66%).
As Nashville small businesses reopen and rehire employees, managing expenses will be top of mind for both their business and employees. Small businesses will need a health insurance partner that cares about their unique financial needs.
73% of Nashville small businesses say that offering health insurance is now a greater priority in their budget - 7% higher than the national average.
When asked how important various factors related to their health insurance carrier have become since the COVID-19 outbreak began, Nashville small business decision-makers reported that cost is as important as ever, and selecting affordable premiums (77%), deductibles (69%), and co-pays for regular doctor’s visits (70%) are 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 (75%); flexible options to support their business's recovery from COVID-19 and help their business and employees get the most from their plan (71%); and with many local physicians similar to the ones they have within their network already (71%).
Our survey gave some insight into the health concerns that are common among Nashville 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 (84%) came out on top. Pediatrics (82%) and psychiatry and behavioral health (80%) followed, and allergy and immunology (78%) and obstetrics and gynecology (76%) were considered among the most important.
What Nashville small businesses want in a health insurance provider.
As we shared, 73% of Nashville small business decision-makers say that offering health insurance is now a higher priority in their overall business budget. Similarly, 63% of respondents indicated that COVID-19 has increased demand for health insurance among their employees, and only 19% indicated that COVID-19 has decreased demand.
Small businesses are thinking more critically about their employees’ health care. In Nashville, nearly half (48%) of small businesses are considering changing their health insurance company ahead of 2021—that’s 10% higher than the national average of 38%. Another 13% are not sure whether they will keep their insurance provider, bringing the total of those who might switch to 61%.
Our survey also found that due to the pandemic, the demand from employees for health coverage has increased, with 63% of Nashville small business owners saying that they have felt “more to significantly more” demand.
When asked what would most influence their decision to change their organization's health insurance company, Nashville small businesses say it would be a carrier who has “more affordable co-pays for commonly prescribed medications” (39%), followed by a brand who “better understands and cares about my local community” (27%), and offers a “larger network of top doctors, hospitals, and specialists” (26%).
As health care companies such as Cigna and Oscar look to support the evolving needs of small businesses and their employees, these findings about Nashville are significant. It’s clear that Nashville’s small businesses want support from a true partner—one that understands the unprecedented challenges they’re dealing with.
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 Nashville, we can better understand what those needs are.
We offer monthly savings, behavioral health benefits, and dedicated Care Teams to guide employees to the best care—whether a top in-network provider or $0 copay 24/7 Virtual Urgent Care. Cigna + Oscar plans are designed for the unique needs of 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.
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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.
