Contributed by Rocky Martin - VP Employee Benefits @ CBIZ
As the health insurance market shifts more responsibility to individuals through higher out-of-pocket costs, would you like to help your employees avoid financial hardship without your company taking on the crippling expense of zero-deductible medical plans? Especially, knowing how much of those premiums simply pad the margins of the insurance carriers? Are you considering higher deductible and H.S.A. compatible medical plans for your healthy and investment-savvy employees? Another question that hits closer to home; can your employees even afford a hospital stay?
The harsh reality is that the average premiums for family coverage have increased by 113% since 20011 and the average employee has less than $1,000 in their savings accounts2. As health care costs continue to rise, voluntary worksite benefits, which have been around for decades, have emerged from a little-known perk to a vital financial, and wellbeing, parachute for employees and employers, alike.
Products like Hospital Indemnity, Accident and Critical Illness Insurance are minimal cost plans built to bridge gaps in coverage and compliment core offerings. They allow employers to remain competitive and deliver value as employees navigate unforeseen health and financial issues.
Many employers are shifting to high deductible medical plans to serve employees that want lower monthly premiums and have no preexisting health issues that a higher coverage, higher cost, plan simply would not make for a sensible investment. Total Rewards should not turn out to be a financial sieve for either the employee or, the employer.
Well-designed and administered worksite plans compliment core medical plans by providing a cash payout directly to the employee after their claim has been approved. Employees can in turn pay down their medical expenses, invest the money in their H.S.A., if applicable, and even use the funds to help pay their living expenses while ill or injured.
Bottom line is: don’t get cornered by exponentially rising medical renewals only to chip away at employee coverage. Seek a benefits advisor that can design a benefits package that meets the needs of your team and the success of your business.
1. Kaiser Family Foundation: https://www.kff.org/report-section/ehbs-2022-section-1-cost-of-health-insurance/
2. GoBankingRates: https://www.gobankingrates.com/money/how-do-americans-savings-stack-up-in-2023-vs-2022/