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Supplemental Insurance Plans That Can Help Fill Your Employer Health Plan Coverage Gaps

According to a study by Eastbridge Consulting Group, total voluntary/worksite sales are on the rise, with 2016 sales reaching $7.63 billion, an increase of almost 7% over 2015.1

Here are the key reasons why: 

  • Health spending is growing—faster than GDP. National health spending is projected to grow at an average rate of 5.6% per year for 2016-2025, and 4.7% per year on a per capita basis. What’s more, health spending is projected to grow 1.2 percentage points faster than Gross Domestic Product (GDP) per year over the period. 2
  • Rising employee cost-sharing responsibilities. In 2016, the average annual premiums for employer-sponsored health insurance were $6,435 for single coverage and $18,142 for family coverage. On average, covered workers contributed 18% of the premium for single coverage and 30% of the premium for family coverage; 51% of workers enrolled in a single coverage plan have a general annual deductible of $1,000 or more.3
  • Many Americans aren’t prepared for emergencies. Approximately 26% of adults have no savings set aside for emergencies. Almost half of Americans would not be able to cover an unexpected expense of $500 or less; almost a quarter would not be able to cover even $100.4

Managing healthcare dollars is a common challenge for many Americans. Your employees may need help paying their out-of-pocket medical expenses, both those going toward deductibles and coinsurance and those that don’t. That’s because major medical plans are not designed to cover every healthcare expense—and they certainly don’t cover the non-medical expenses and potential income loss associated with accidents, illnesses, and other unexpected events.

That’s where supplemental health insurance comes in handy. Supplemental plans, also called voluntary plans, provide valuable benefits that can be used complement your employer healthcare plan.

Let’s explore the marketplace for these plans and take a look at three types of coverage your employees may be interested in securing.

1. Supplemental accident plans

Supplemental accident insurance plans pay cash directly to employees for covered losses. These cash benefits can be used to help cover the medical and out-of-pocket costs related to an accidental injury or they can be used for non- medical expenses.

No one plans to visit the E.R. with an injury, but the CDC reports that 37.2 million hospital visits a year occur as the result of an accident, so it’s easy to see the potential value of these plans. 5

Learn about Combined Insurance’s Accident Champion.

2. Supplemental disability plans

These plans replace some of a working person's income when they can’t work due to a disability. Even an individual or family with a sizable savings account may deplete their “rainy day funds” when income is disrupted. Supplemental disability benefits are paid directly to employees when they are totally disabled and cannot work—and the cash benefit can be used however they choose.

Find out about Disability Income Protector from Combined Insurance.

3. Supplemental critical illness plans

Thanks to advances in medicine, more people are surviving critical conditions. But keeping up with both medical and everyday expenses can be a challenge while they undergo costly recovery or treatment. Lump-sum critical illness benefits can be used by employees to pay bills after being diagnosed with a specific medical condition covered by their plan, such as heart attack, certain cancers, kidney failure, dismemberment, blindness, severe burns and stroke. 

Take a look at Combined Insurance's Critical Illness Champion.

My team is ready to help you stand out among employers by helping you maximize the benefits you can offer your employees. Contact us today to get started.

These policies contain exclusions and limitations, see policies for complete details of coverage. Accident, sickness and disability insurance policies issued by Combined Insurance Company of America (Chicago IL) (CICA) in all states, except New York. CICA is not licensed and does not solicit business in New York. In New York, accident, sickness and disability insurance policies issued by Combined Life Insurance Company of New York (Latham, NY) (CLICNY).

 

References: 

1 Four Voluntary Products Achieved Double-Digit Sales Increases in 2016 as Compared to 2015, According to the Eastbridge Consulting Group. (2017, May 11). Retrieved July 14, 2017, from http://www.businesswire.com/news/home/20170511005052/en/Voluntary-Products-Achieved-Double-Digit-Sales-Increases-2016.link opens in a new window

 2 NHE-Fact-Sheet. (2017, June 14). Retrieved July 14, 2017, from https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and-reports/nationalhealthexpenddata/nhe-fact-sheet.html.link opens in a new window

3 14, 2. S. (2017, March 20). 2016 Employer Health Benefits Survey - Summary Of Findings. Retrieved July 14, 2017, from http://www.kff.org/report-section/ehbs-2016-summary-of-findings/.link opens in a new window

4 Lake, R. (n.d.). 23 Dizzying Average American Savings Statistics. Retrieved July 14, 2017, from https://www.creditdonkey.com/average-american-savings-statistics.html.link opens in a new window

5 National Center for Health Statistics. (2017, May 03). Retrieved July 14, 2017, from https://www.cdc.gov/nchs/fastats/emergency-department.htm.link opens in a new window