Voluntary benefits in high demand
Voluntary benefits are becoming more important to help offset employees’ out-of-pocket medical expenses.
Financial services firm Securian recently conducted a survey that highlights this and employees financial concerns if faced with out-of-pocket medical costs.
For instance, if faced with a $5,000 or more out-of-pocket expense, 28% of respondents who have health insurance through work said they would use their personal savings to pay for it. Moreover, 21% of respondents said they don’t know how they would pay for the expense.
Others said they would have to rely on:
Credit cards (12%)
Loan from their 401K (7%)
Tax return (5%)
Selling/pawning personal possessions (2%)
Paying for these expenses would be the top financial concern for 42% of employees if faced with a debilitating injury, critical illness or hospitalization. However, lost wages from work to pay for regular monthly expenses would be the concern of 58% of employees.
Voluntary benefits are a cost-effective way for employers to help their employees offset these costs. However, communicating the availability of these benefits is key—whether it’s through direct mail, email, video, digital materials, an interactive benefits guide or webinars.
Securian's director of group insurance client relationship stated in a recent EBN article that “the rising cost of healthcare has driven many employers to offer supplemental group insurance products, often in conjunction with a health savings account… and when employees are aware that these benefits are available to them through work they opt in at a high rate."
Fundamental Care, brought to you by Coterie Advisory Group, is a benefits marketplace that provides a solution to unaffordable insurance premiums and is available for employers, independent contractors, and associations. The marketplace includes access to limited medical plans, specialty medical plans, dental insurance, life insurance, and value-added services. Fundamental Care doesn’t offer a high-deductible plan that requires you to pay thousands out of pocket before the insurance starts paying the bills. Instead, Fundamental Care reduces costs by limiting reimbursement for basic expenses while providing first-dollar coverage, as opposed to high deductibles, co-insurance, and high co-pays for visits or procedures. To learn more, visit www.fundamental-care.com.
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