The trend of high deductible health plans (HDHPs) continues. Employers looking for ways to save on health care costs or to keep premiums low have opted for HDHPs. This leaves a stressful gap for employees facing a medical emergency and unable to cover the high deductible. Voluntary benefits can help fill this void and provide peace of mind for employees.
Even though many people have major medical insurance, they are not prepared for a financial hardship should one occur. According to the Report on the Economic Well-Being of U.S. Households released by the Federal Reserve, 46% of respondents said they could not pay for a hypothetical emergency expense of $400 or more. They could only cover it by selling something or borrowing money. That means a large percentage of adults in the U.S. don’t have the savings to pay for unexpected medical care.
Offer voluntary benefits that ease financial burden
Financial strain suffered by workers affected by medical issues can have a negative impact on a company. From absenteeism to distraction and anxiety, employees’ ability to perform quality work is impaired. Support employees by offering voluntary coverage that reduces the financial burden of out of pocket expenses.
- Critical illness insurance
- Accident and hospital indemnity insurance
- Flexible spending account (if your group health plan qualifies for the medical reimbursement program)
- Vision insurance
- Dental insurance
- Short and long term disability
- Life insurance
PEOs change the equation
Previously voluntary benefits were cost prohibitive for small and medium sized businesses. Voluntary benefit carriers try to mitigate the loss potential of insuring a small group by charging higher premiums. Participation is also a key factor reviewed. They expect 80% enrollment to even consider small and medium sized companies.
Those limitations are waived for companies working with a professional employer organization (PEO). Working with a PEO brings buying power. Employees can expect lower deductibles, lower co-pays, and out-of-pockets with higher annual and lifetime maximums. They will also have multiple plans with a wide network and better coverage from which to choose.
MidwestHR is a leading Chicago PEO. Unlock access to the voluntary benefits that your employees need. We can help you offer a comprehensive benefit package regardless of your company size. Give us a call 630-836-3000 to learn more outsourcing your employee benefits.