Since the introduction of the Affordable Care Act (ACA) employers have been looking for ways to decrease the costs of offering health care to employees. Due to the high expense, many employers are pushing costs off to employees. To offset the extra cost being pushed along, employers are also choosing consumer driven benefits options, such as High Deductible Health Plans (HDHPs) and offering voluntary benefit options to offset the costs of the HDHP and supplement their major medical plans.
HDHPs feature higher deductibles than traditional insurance plans and can be combined with health savings accounts, reimbursement accounts and voluntary benefits to pay for qualified out-of-pocket expenses. As an employer, you can offer voluntary benefits such as Accident, Critical Illness/Cancer and Hospital Indemnity to your employees at no cost to you unless you decide to contribute to the premiums.
Though the premiums on HDHPs are low, the out-of-pocket costs that come along with the high deductible can hit hard with an unexpected injury or illness. Along with the deductible cost, individuals must also factor in copayments, treatment, medications and follow up appointments. It isn’t uncommon for individuals to delay treatment or doctor visits due to out-of-pocket costs knowing medical bills will continue to come through if one is too injured or sick to work.
Employees enrolled in voluntary insurance have more stability and security with their financial well-being due to the safety net. They can focus more on their jobs and not have such a concern about health care costs. Additionally, many employers who offer voluntary insurance policies experience lower workers’ compensation clams since they have the ability to handle the expenses of their care with the cash benefits that are paid out after injury or illness claim.