What Types of Supplemental Benefits Can Employers Offer?
Many organizations offer a range of employee benefits such as life and health insurance, paid time off, and pension plans. Along with this, a company may also sometimes provide a range of voluntary or supplemental benefits. Most of the time, employees will typically pay all the costs of these benefits, although this is not always the case. Supplemental benefits might include workplace wellness programs, additional coverage for critical illness, hospitalization, accidents, or long-term care, financial wellness programs, discounted legal services, and identity theft protection. It may also include discounts on various goods and services, along with other types of insurance such as homeowners, auto, pet, and travel insurance.
Supplemental Health Insurance
Supplemental health insurance is a type of supplemental plan that covers costs above and beyond what would normally be paid for by a standard health policy. It may provide additional coverage and cover costs that would not be covered by a traditional health plan such as co-pays, coinsurance, and deductibles, depending on the health plan that you choose. Some examples of supplemental health plans include critical illness cover, dental, and vision plans along with long-term care, disability insurance, and travel insurance to cover healthcare when you are outside of your regular plan network.
Why Supplemental Health is Essential for Benefits Plans
Around 90% of employees believe that there has been an increased need for supplemental insurance since the beginning of the pandemic, for different reasons. COVID19 has not only highlighted the importance of more comprehensive health coverage but has also impacted various work models and the job market overall. In one study from 2020, over 40% of respondents said that the pandemic had led to them focusing more on their health compared to in the past. Along with this, the increase in remote work has led to a bigger demand for person-centered benefits compared to office-centered.
Other Supplemental Benefits
While supplemental health benefits often get the most attention, they are not the only option. It is worth employers considering the benefits of offering other types of supplemental benefits such as financial wellness plans and discounts on products and services. One of the main advantages of these types of benefits for employers is that as an employer, you will often pay next to nothing for them, as it is up to the employer if they want to cover part of the monthly premium or cost. Along with this, offering supplemental benefits has been found to improve the recruitment process and reduce employee turnover in workplaces. One study found that seven in ten employers provide supplemental benefits for this reason. This works well as employees tend to prefer having the ability to select the products that work best for them and are more likely to stay with an employer who provides them with this option.
Whether your workplace offers supplemental health insurance, other supplemental health benefits, non-health-related supplemental benefits, or a combination of both, it’s clear that this is something that is becoming more and more important to employees today.