Rising healthcare costs have increased pressure on employers and employees alike to reduce expenses on health insurance while maintaining sufficient coverage. In the struggle to cut costs, voluntary benefits have taken the back burner, yet some studies question whether this really helps or hurts employers and employees. Voluntary benefits often fill in the gaps that other insurance leaves behind, providing affordable and personalized coverage for employees and their families. Though some businesses have been keen to cut voluntary benefits,MetLife Inc.’s 12th annual “Employee Benefit Trends Study” recorded that 65% of employees said they would feel more loyal to their employer if they were offered voluntary benefits.
Personalization is key with voluntary benefits.
The idea is to offer employees the opportunity to choose affordable coverage that serves their needs, as well as the needs of their family. One way to find the right coverage for your employees is to conduct a survey to find out more about their lifestyles and other specific needs. Furthermore, it is important to consider effective communication methods for different generations of employees — Baby Boomers might prefer paper while Millennials prefer an electronic campaign.
A PricewaterhouseCoopers study found that 83% of employers are now offering high-deductible health plans (HDHPs), and 25% are offering only HDHPs. This trend will continue to see a rise over the next few years. The good news is those with HDHPs are more likely to take advantage of wellness and find ways to save costs through employer sponsored programs.
Since employees are looking for ways to save money and help with paying the high deductible, they can choose accident, disability plans and hospital indemnity plans that will pay cash directly to the policyholder that they put back towards their deductible and towards treatment that may not be covered by major medical.
The rapidly changing healthcare landscape has seen a shift in decision-making power from employers to employees. While different businesses may take different approaches with regard to the availability and selection of voluntary benefits, greater personalization and a freedom to choose offer employees more options while reducing costs and headaches for employers.