How Do Your Business and Employees Benefit from Supplementary Insurance?

As health care costs continue to rise, employers have begun to put the burden of health care costs on their employees. Some even cut back on employer-paid benefits. Healthcare law requires most people to provide major health insurance with certain essential benefits, and most employers do. Even so, the amount workers pay out of pocket through these plans continues to increase as employers try to control their own costs.

A 2015 report revealed how employers sought ways to cut expenses by imposing costs on workers in the form of increased exemptions, bonuses and contributions. By offering additional or voluntary insurance to employees, financial protection can be provided in the event of a serious accident or illness. Three reasons why additional insurance for employees is necessary:

Healthcare cost increases outpace increases

According to one report, 31 percent of employers increased employee premiums, 30 percent increased employee contributions, and 21 percent implemented highly discounted health plans. These are big expenses that affect employees' wallets, but salary increases don't keep up. A recent study by the Kaiser Family Foundation found that cuts have increased six times faster than worker earnings since 2010.

Out-of-pocket limits are high, even for higher-paid employees

The average out-of-pocket expenditure is about $7,000 for individuals and $14,000 for families, which is only for basic health benefits covered. Still, 52 percent of employees have less than $1,000 to pay for out-of-pocket expenses associated with an unexpected serious illness or accident, and 28 percent have less than $500.

Workers tend to choose price over quality, which may mean less coverage than they realize

With rising costs, it's tempting to choose health insurance based on the monthly price tag. In fact, 30 percent of employees say the monthly premium is the most important factor when choosing a major health insurance plan each year. A lower-cost plan could mean short-term savings, but eventually add up to significantly higher out-of-pocket costs.

what is supplemental life insurance

Employees need a financial safety net. Benefits from supplemental insurance have long served as a way to help protect employees when they are sick or injured, regardless of substantial health insurance coverage. Some of these benefits include vision, dental, pet insurance, short-term disability, accident, critical illness and hospital compensation. Those receiving additional benefits can use the money they earn from these products to help pay for daily living expenses such as rent, mortgage payments, groceries, childcare and medical bills during the insured's downtime.

When companies add voluntary products to the benefits package, they can increase employee satisfaction levels and help them feel more financially prepared to deal with potential life-changing events. On the other hand, employers can experience lower operating costs and save money in the process. The result is a win-win situation for both employer and employee.

How logical it is for businesses to want to cut payroll taxes and cut health insurance expenses. Contact us for a 15-20 minute visit and make a plan to lower your operational costs. And if we do, it will cost nothing. That's right, it won't cost you a penny. For working individuals who are in a position or want to do it alone, we also have a plan for you. Providing financial protection to more than 50 million people for nearly 60 years, our office has the experience to make your future a little brighter.

Calvin Johnson, Agent, Aflac Representative - Cell: (347) 635-0095 Fax: (917) 793-4230

calvin_johnson@us.aflac.com

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