Health care reform and increasing health care costs continue to drive demand for voluntary benefits—and for good reason. As the cost of health insurance rises, employers continue to struggle to control their company’s health care expenses. Many have already passed more of the premium costs to employees and have increased deductibles, co-payments or out-of-pocket limits. For many organizations, voluntary benefits may help solve a number of concerns and challenges that have surfaced during this time of health care financial insecurity.
Voluntary insurance policies, including critical illness, cancer, short-term disability, accident & sickness, and dental, pay the policyholder directly for unexpected costs associated with a serious illness, injury or loss.
Since many of these costs are not covered by major medical insurance and families often do not have extra cash for these emergencies, voluntary insurance plans help provide a safety net to protect the policyholder’s assets. Often, having these policies can save individuals from out-of-pocket costs, unexpected debt and may even prevent bankruptcy – helping them focus on getting better and getting back to work.
Adding voluntary insurance products not only increases an employee’s insurance options, but also helps give policyholders peace of mind and financial security. In the event of sickness or injury, policyholders receive cash benefits that are often used to help pay for daily living expenses, such as rent, gas, groceries, babysitting and other necessities, or to help cover deductibles and copayments.
Although aspects of health care reform are in effect, most of the new law will be phased in over the next several years. Voluntary options can be counted on to help soften the impact of the inevitable cost-shifting and rising out-of-pocket costs that are part of the current health care landscape.
Strategic Employer Planning is very excited to offer you the very best in Voluntary Benefits. As the employer, the immediate impact on employee morale is fascinating to watch. By showing you care, and empowering them to make decisions that may impact their lives, it’s retention strength is compelling.
HSA, HRA and FSA Funding Vehicles
Health Savings Accounts, Health Reimbursement Arrangements and Flexible Spending Accounts are all funding vehicles that should always be considered and, occasionally offered, as options in High Deductible Medical plans and with other Ancillary products. Employers/Employees consider these options to save money on a pre-tax basis and concurrently cover healthcare expenses.
Voluntary Benefits including GAP Coverage
These employee-paid benefits continue to be a valuable and profit driven discussion as deductibles rise on medical plans and as other employer benefits are being discontinued due to rising costs. What is known as GAP coverage allows an employer to transition to higher deductible plans and continue to cover the costs associated with major health events.