Supplemental Benefits LinkedIn Posts

The following accompanied soundbites posted on LinkedIn to educate employers on the utility of supplemental benefits as part of an employee benefits package.

To write this post, I interviewed insurance subject matter experts. I wrote this post for NFP.com.

Sup Benefits 1:

Whether you call them supplemental benefits or voluntary benefits, these types of benefits are by no means new to the employee health benefits landscape. In fact, they’ve been around since the early 1990s.

So why should employers consider adding supplemental benefits to their employee health benefits package, all of a sudden?

The answer lies in the onset of COVID-19 and the unpredictable nature of a worldwide pandemic, and the ability of supplemental benefits to act as a financial safety net for employees impacted by COVID-19.

Take for example, an employee who is hospitalized with COVID-19 or a COVID-19-related illness and the strain the out-of-pocket costs of a hospital stay places on their finances.

Something as simple and affordable as hospital indemnity insurance or critical illness insurance could help cover the costs of a COVID-related hospital admission or stay.

Sup Benefits 2:

As 2020 comes to a close, many American employers are entering 2021 amid financial uncertainty and under considerable financial strain.

This strain is compounded the fact that 60% of Americans don’t have $1,000 in savings with 45% of Americans having no savings at all, according to Bankrate.

Taking these uncomfortable stats into consideration, many Americans are one injurious accident or critical illness away from financial ruin.

Even with health insurance, the odds are not in the favor of a majority of Americans.

Supplemental benefits are one of the best ways to bridge the gap between Americans’ little-to-no savings and a $2,000-$3,000 deductible.

The best part of supplemental benefits? They’re no longer an expensive addition to an employee benefits package.

Sup Benefits 3:

When most brokers speak to their clients, they speak to them about “the top 5” benefits.

(Typically medical, dental, vision, life and disability.)

Unfortunately, many brokers fail to educate their clients on the true value that supplemental benefits bring to a health benefits package.

In reality, supplemental benefits often provide more coverage in the event a claim is triggered.

Going forward, it’s the responsibility of brokers to show their clients how supplemental benefits are the key to a robust employee benefits package.

This is especially true in the face of rising healthcare costs, like higher deductibles and out of pockets.

Sup Benefits 4:

In 2021, brokers and employers alike should work hard to help employees understand the true strategic value supplemental benefits bring to a benefits package.

Healthcare costs, like deductibles and out-of-pocket payments, are trending upward with incremental price increases each year.

These price increases, no matter how small, end up having a negative impact on employees’ wallets.

Consequently, supplemental benefits have moved from a “nice to have” to a “must have.”

Fortunately, multiple supplemental benefit carriers have entered the insurance market.

These new carriers give employees more choice by enriching the benefits with more robust benefits schedules.

Secondly, and most importantly, new options have led to greater access to more affordable supplemental benefits.

Taking advantage of these supplemental benefits is a great way to offset medical benefit spend, giving your employees an actionable choice to ensure a soft financial landing.

Sup Benefits 5:

It’s commonly acknowledged that most employees take a passive approach to their benefits election each year.

Historically, most truly didn’t understand what a deductible is, what a co-pay is or how their out-of-pockets work.

Those days are gone and COVID-19 has changed the discussion around benefits.

Since the pandemic began, it’s become clear that it’s no longer acceptable for employees to not understand their benefits.

Going into 2021, employees need to understand how their benefits work, what benefits are available to them and how to use their benefits so that if they are impacted by COVID-19, they can seek the proper treatment at the most affordable cost.

Super Benefits 6:

Some employers may be tempted to “set and forget” their supplemental benefits.

However, if you’re still offering benefits you selected 4–5 years ago, you may be surprised at the transformation of the supplemental benefit landscape since 2015–2016.

New carriers have entered the insurance market, giving people greater choice and more affordable options.

Treat supplemental benefits the same way you would treat the medical or life components of your benefit portfolio.

By “setting and forgetting” your benefits, you run the risk of providing out of date benefits to your employees at a higher cost.

Sup Benefits 7:

Employees understand that they need to review their medical, dental and vision benefits before selecting them.

While this review is often passive, employees know they should at scroll through their options and review these three key benefits.

Something employees don’t give enough attention to is their supplemental benefits. Why?

Supplemental benefits are often at the back of the benefit booklet and disconnected from the medical benefits page.

The same goes for digital enrollment.

Supplemental benefits usually come last and employees fail to make the connection between medical benefits and supplemental benefits.

The solution is to place the supplemental benefits next to the medical benefits.

By giving employees the opportunity to make the connection between medical and supplemental benefits, you increase the chances of them utilizing these valuable options.