When Health Insurance Isn't Enough
$$ that helps fill the gaps left by health insurance.
The need to supplement a health plan has resulted from high health care costs, large deductibles, and increased premiums. Benefits like Accident Expense and Critical Illness were once considered nice “add-ons.” These plans, known in the industry as “Voluntary” or “Supplemental” benefits are needed to help enhance an employee’s medical plan.
3 Reasons for Supplemental/Voluntary Benefits
Fill the Gaps
Dollars paid out under an Accident or Critical Illness plan are paid directly to the employee. We know that medical insurance doesn’t pay all the bills. Yes, there are deductibles and copays to be met but what about the extra expenses a person may incur? Even disability plans don’t cover 100% of their earnings!
Dollars paid out with an accident or critical illness plan are paid to them and they are free to spend it in whatever way they want or need. Examples include: PT visits, Daycare Expenses, missed days of work in addition to Co-pays, Coinsurance, and Deductibles.
Meet the Employee's Needs
Like most things in life, “one size does not fit all.” A single person in their 20s has different insurance needs than a 30-year-old with a young family and their needs are different than a couple in their 50s. Thus offering different options in your benefits package which will allow employees to customize their benefits to meet their lifestyle and risks.
High Deductible Health Plans
Most Accident and Critical Illness plans are compatible with High Deductible Health Plans. This helps the employee to control out-of-pocket expenses and can take some of the bite out of a high deductible plan.
Supplemental or Voluntary benefits are no longer an “add on” benefit. Help your employees help themselves by providing them with the option to buy a Critical Illness or Accident Plan.
About the Author: Tim Pachowitz helps businesses build, communicate and implement employee benefit plans. As an Account Executive at Benefits, Inc. engineering a plan strategy from start to finish is the most rewarding part of the role. Outside the office, Tim enjoys fishing, hiking, and making maple syrup. Most of all, he enjoys time outdoors with his 6 grandsons (no girls yet).