Helping Clients Build Welcoming Workplaces: Benefits That Better Support Black Employees

Quick look: With the proper knowledge and inclusive employee benefits options, brokers can help address the racial health and wealth disparities affecting today’s Black employees and their families. Here, we explore inequalities facing Black Americans and how partnering with a PEO can enable brokers and their clients to level the playing field for marginalized workers.

February is Black History Month, a time dedicated to acknowledging African Americans’ accomplishments, culture, history, and experiences. The theme for Black History Month in 2025 is “African Americans and Labor,” highlighting and celebrating the many impacts of Black peoples’ past and present work.

Black History Month offers brokers an opportunity to review how to further help clients support their Black employees. While racial inequalities exist in the healthcare system and the possession of wealth in the U.S., brokers can help close these gaps by aligning employers with the right benefits to improve the lives of historically marginalized staff.

An unequal healthcare experience

Before exploring how brokers can help clients advocate for Black employees, it’s crucial to address the racial bias and inequalities in the healthcare system today.

Discrimination

KFF reported that 18% of Black adults and 21% of Black women report they’ve been treated unfairly or with disrespect by a medical provider in the past three years because of their race or ethnic background. This number contrasts with just 3% of white Adults. Additionally, 60% of Black adults say they prepare for possible insults from healthcare staff and must be very wary about their appearance during appointments.

The same research highlighted the positive effect of representative providers on Black patients. Specifically, when these patients had a doctor with a similar background for at least half of their recent appointments, they reported that they experienced:

• Clearer explanations that made information easier to understand
• Involvement in care decision-making
• Their cultural values or beliefs were understood and respected
• Questions about their social and economic factors

These findings reinforce the importance of brokers offering clients health insurance plans with a diverse range of physicians.

Misdiagnosis

In addition to facing discrimination in medical settings, research has shown that Black patients (including children) are misdiagnosed more frequently than white patients, especially for mental illnesses. Similarly, despite Black people being 20% more likely to experience mental health issues, only one-quarter of them will receive care (compared to 40% of white people).

The reason behind misdiagnosis is multifaceted. Implicit biases may affect how physicians interact with their Black patients. Stigma can also be involved—Black people may not be comfortable seeking care if they do not feel their provider will understand their background or be able to relate to them.

Another cause of the frequent misdiagnoses is rooted in the diagnosis of ailments. For example, the algorithm for assessing lung health refers to centuries-old information suggesting Black people have a lower lung capacity than white people. This has led to Black patients being undiagnosed and underdiagnosed with respiratory complications.

Medical debt

Black patients also experience more medical-related debt than other races. Research reveals that one in three Black adults has past-due medical bills (compared to fewer than one in four white adults). Further, nearly 28% of Black households carry this debt, in comparison to just 17.2% of white, non-Hispanic households.

This financial liability can cause individuals and families to skip medical care, affecting their current and future health. Brokers can lighten this load by offering small businesses with health insurance plans at more affordable rates than if they were to purchase them on their own. Additionally, access to flexible savings accounts (FSAs) and health savings accounts (HSAs) can ease the burden.

The wealth gap

Black Americans face wealth disparities in addition to medical ones, including pay inequalities, having fewer retirement savings and assets, and being disproportionately affected by job loss.

Pay inequality

According to the New York Times, the average Black worker makes 21% less than the average white worker. Black women specifically face an even more significant gap, earning just 70% as much as White men.

While the wage gap between the two has shrunk since the early 2000s, much room exists for improvement. Brokers can encourage equity by suggesting a partnership with a professional employer organization (PEO) that provides access to software that identifies discrepancies in a company’s pay, promotion, and turnover data.

Retirement savings and assets

The U.S. Government Accountability Office reports that Black employees between the ages of 51 and 64 are the least likely to have a retirement account. Further, when they do have accounts, their median balances are substantially lower than their similarly aged white counterparts across all income levels. For example, white workers in the lowest income band had a median retirement account value of $57,101, versus $12,819 for Black workers.

Another factor affecting Black Americans’ retirement income is Social Security benefits. Because this income is calculated using factors like lifetime earnings, Black retirees often receive less than their white peers. This can negatively impact them, considering that of Social Security beneficiaries age 65 and older, 37% of men and 42% of women receive over half their income from the benefit.

In addition to funds in retirement savings accounts and Social Security income, homes can be one of the most valuable assets for people in their golden years. Unfortunately, according to the National League of Cities, Black Americans’ home ownership rate is 46%, compared to 76% for white Americans.

Job loss

Layoffs impact thousands of workers nationwide, and Black Americans tend to be hit significantly harder than most. For example, data from the Bureau of Labor Statistics found that between April and July 2023, 90% of newly unemployed adults were Black.

The right partnership can uplift your clients’ staff

With the support of their benefits brokers, small- and medium-sized business (SMB) leaders can significantly improve their Black employees’ careers, finances, and health. Employers and brokers should be aware of the current racial disparities and how the right benefits packages can better support Black workers and their families.

A PEO like ExtensisHR can equip brokers with the plans and services they need to help companies create inclusive cultures, including:

• Health insurance plans with diverse in-network physicians and coverage for telehealth sessions, preventive care, mental health support, and more
• The option for medical plans to include health savings accounts (HSAs) that can pay for medical expenses and function as a long-term investment tool
• 401(k) retirement and 529 education savings accounts, as well as financial training on investing, budgeting, and more
• Access to an intuitive DEI Dashboard that allows clients to view real-time information on pay equity, salary trends, employee turnover, promotions, and more across race and gender demographics

Together, brokers, employers, and PEOs can create work environments and benefits packages that respect and empower Black talent.

Contact the experts at ExtensisHR today to explore how we can help you craft a robust and inclusive employee benefits portfolio to help level the playing field for Black Americans.