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Home Health Case Study: Enhanced Benefits Increased Retention in an Industry Rifled by Turnover

The nation’s Home Health Industry is plagued by various factors that lend to its remarkably high turnover rate. With low wages and inconsistent schedules, the median annual income for home care workers is around $16,200, leading to high poverty rates among those employed in this industry. In fact, one in five home care workers lives below the federal poverty line, and almost half live in low-income households. These workers are often enticed to bounce from one company to the next, persuaded by cents on the dollar and the promise of benefits. These factors and others lead to the industry’s high turnover rate of 82 percent.

Because of these factors, many home health organizations found turnover to be so severe they had to turn away new clients because they did not have enough caregivers to take on new business.

In addition to turnover, many home care organizations were affected by the Affordable Care Act (ACA) that mandates organizations with 50 or more full-time equivalent employees to provide access to preventative care. In response, home care organizations needed inexpensive health plans that aligned with their thin margins. Because of limited affordable options, many home health organizations enrolled employees into Minimum Essential Coverage (MEC) plans. MECs historically are worthless compliance plays, which offer employees no valuable healthcare benefits. These plans exacerbate the need for affordable and convenient healthcare that these underinsured, low-income employees desperately need.

In this case study, we review a home health organization located in South Texas who needed to satisfy the ACA Mandate but wanted to provide their employees with a robust and meaningful benefit. Download the case study to read more!


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