Gen Z Are Relying on Their Parents to Help Pick Health Insurance Plans

Gen Z are relying on their parents later in life, and that apparently includes when it’s time to finally pick their employer-sponsored health insurance plans.
According to a survey for payroll tech firm Justworks, both Gen Z and millennials—so-called Zillennials—also wanted more support from their companies when the open enrollment process began.
The research found 47 percent of Zillennials—those aged 18 to 43—relied on their parents’ guidance to make a choice, with Gen Z more likely to depend on mom and dad, at 57 percent versus 44 percent of millennials.
And more than half of Zillennials, 51 percent, admitted to blindly choosing a health insurance plan because they did not understand the complicated terms and definitions.
Financial literacy instructor Alex Beene, an assistant administrator for the State of Tennessee, said that while some may see the data as proof of Gen Z’s laziness, it could mean that people of that generation hoped to benefit from the wisdom of their elders.
“I think it’s more the result of many younger people who want to learn from the pitfalls their parents and grandparents have made in prior years when it comes to choosing which insurance product is best for them,” Beene told Newsweek.
“Gen Z has grown up in a world where more often than not they hear their parents and other elders in their family complain about rising insurance prices, less coverage, and unexpected problems that occur when seeking health care and its subsequent reimbursement.”
However, the confusion around choosing a plan often leads to regret for the younger generations, with 46 percent of Zillennials saying they regretted choices they made during open enrollment, compared to a quarter of those of Generation X or older, according to the survey.
The dependency on others to help make their health insurance choices could reflect a need for greater support in company HR departments, human resources consultant Bryan Driscoll said.
The consumer survey was conducted online by The Harris Poll on behalf of Justworks from September 3-5 and 5-9 among 4,167 U.S. adults including 2,389 respondents who participated in open enrollment.
Roughly 45 percent of Zillennials who participated in open enrollment said they were not sure where to direct their questions about the process, while only 25 percent of Gen X aged workers or older said the same, the survey found.
More than four in five (81 percent) said they felt that HR departments should provide employees with more help during the open enrollment process.
“This says more about the workplace and society than it does about them,” Driscoll told Newsweek. “Gen Z is inheriting a complex, fragmented benefits system that can be confusing and downright opaque. What’s worse, workplaces aren’t stepping up to make this process any easier.
“The fact that young employees feel the need to consult family members just shows how disconnected workplace and societal policies are from the realities of the workforce.”
Beene said while asking others for help could be an important part of the process of choosing health insurance, Gen Z and millennials still needed to look closely at the options themselves.
“Asking them about what coverage is best and what they want to avoid is a logical step,” Beene said. “It’s just important these same people do their own due diligence and consult professionals before making a firm decision. You want to have a fully rounded view of insurance that is so pivotal in the lives of many.”
Driscoll said that many companies were still forcing employees to sift through the fine print and said adding additional employee support could help younger employees navigate this process.
“Gen Z wants support and clarity, not endless jargon,” Driscoll said. “If HR departments and benefits providers were doing their job right, young workers wouldn’t have to turn to mom or dad just to understand their health options. For a generation that’s already dealing with high student debt and a challenging job market, is it really too much to ask for benefits support that actually feels supportive?”